TOKYO: Japanese government bond yields fell on Friday, tracking US Treasury yields lower, amid caution ahead of US non-farm payrolls data and next week’s domestic auction.

The 20-year JGB yield fell 2 basis points to 1.095%.

The 30-year JGB yield fell 2.5 basis points to 1.490% ahead of an auction for bonds with the same maturity next week. The 40-year JGB yield fell 2 basis points to 1.755%.

“The market was solid today,” said Kazuhiko Sano, a strategist at Tokai Tokyo Securities.

Traders’ cautious stance about a possible decision by the Bank of Japan to change its ultra-loose policy took a pause during the session, Sano said.

Speculation that the central bank will alter its yield curve control (YCC) policy, under which the bank maintains low borrowing costs, emerged again since data last week showed core consumer prices in Japan’s capital rose at their fastest annual pace in 40 years in November.

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The 10-year JGB yield was flat at 0.250%.

The two-year JGBs did not trade and the yield stayed at -0.030%.

The five-year yield rose 0.5 basis point to 0.105%.

Benchmark 10-year JGB futures fell 3 yen to 148.94, with a trading volume of 15,076 lots.