TOKYO, May 14 Reuters Japanese government bond futures rose and yields on most cash bonds fell on Friday after a Bank of Japan debtbuying operation showed that investors have solid demand for longterm notes.
The focus shifts to a busy auction calendar, which will be a major test of the markets ability to take on new supply amid rising worries about an acceleration in U.S. inflation, which is normally bearish for bond prices.
Japans finance ministry will auction 5year, 10year, and 20year debt next week, and bond traders will closely analyse the results for any signs of a pickup or decline in investor demand, which could have a big impact on the yield curve.
Benchmark 10year JGB futures rose 0.12 point to 151.37, with a trading volume of 15,004 lots.
The 10year JGB yield fell 1 basis point to 0.080, and the 20year JGB yield fell 2 basis points to 0.440.
The 30year JGB yield fell 2 basis points to 0.650.
At the longend of the curve, the 40year JGB yield fell 1 basis point to 0.705.
The fiveyear yield fell 0.5 basis point to minus 0.095.
At the shortend, the twoyear JGB yield was unchanged at minus 0.130.
Reporting by the Tokyo markets team, Editing by Sherry JacobPhillips