They were also helped by moderate demand at a 30-year auction. The 10-year JGB yield inched down 0.5 basis point to 1.040 percent, staying below a four-month peak of 1.090 percent hit last week, though trading was subdued. "JGB prices were lifted after gains in bonds overseas, but activity was limited before events in Europe, and partly because the holiday season is starting," said a trader at a Japanese bank. Hopes that the EU summit would lead to a turning point in the euro zone's debt crisis took a hit after a senior German official gave a downbeat assessment of prospects for an agreement, in an apparent effort to jolt partners into accepting Berlin's terms. Another focal point is the European Central Bank's policy decision on Thursday. The ECB is seen likely to cut interest rates by 25 basis points to 1.0 percent, and traders are also looking for hints on whether the central bank is ready to step up its government bond buying programme. In the latest evidence of the euro zone debt crisis affecting the global economy, Japan's machinery orders data released on Thursday was weaker-than-expected, underpinning the allure of government debts. Japanese shares fell 0.7 percent, along with regional peers, as market players turned cautious ahead of the key events in Europe. December 10-year futures gained 0.19 point to 142.32. March futures, which will become the benchmark contract by Monday at the latest as trading in the December contract will end on Friday, rose 0.14 point to 141.74. Open interest for March futures rose to over 42,000 contracts this morning, surpassing those of December on Thursday. Superlongs such as 20- and 30-year bonds were firmer as the 20-year yield dipped 0.5 basis point to 1.775 percent and the 30-year yield declined 1.5 basis point to 1.950 percent, after Thursday's 700 billion yen ($9.01 billion) auction of 30-year JGBs drew moderate demand, supported by investors such as life insurers, the main buyers for the maturity, and bids from brokers for their inventories. "Although the bid-to-cover ratio was lower than the previous offering, we can say the auction was reasonable with the tail as small as 0.09," said Yusuke Ikawa, rates strategist at RBS Securities, adding that the auction result could be worse because investors and brokers tend to hold off on buying in December ahead of year-end book closing. Money markets rates remain stable, with the overnight call rate flat at around 0.07 percent. Bunds rallied on Wednesday after solid demand at a German debt auction and a sell-off in periphery euro zone bonds prompted investors to pile into debt issued by the region's strongest member ahead of the EU meeting. US Treasury prices rose on Wednesday and were little changed in Asia on Thursday.