TOKYO, July 11 (Reuters) - Japan's super-long government
bonds rose on Friday, as investors bought them back after a
heavy sell-off this week, with a firm outcome of the Bank of
Japan's bond buying operations supporting sentiment.
The 20-year JGB yield fell 0.5 basis point
(bp) to 2.5%. The 30-year JGB yield fell 2.5
bps to 3.04%.
Yields move inversely to bond prices.
"The decline in yields on super-long dated bonds is a
response to the sell-off earlier this week," said Katsutoshi
Inadome, a senior strategist at Sumitomo Mitsui Trust Asset
Management.
The BOJ's bond buying operation saw firm outcome around the
bonds with maturities of more than 25 years, which supported
sentiment, he said.
The yields on 20- and 30-year bonds surged this week as the
market weighed the risk of the defeat of the Liberal Democratic
Party and its coalition partner Komeito at the upcoming upper
house election.
The potential defeat could give power to opposition parties
that have pledged in their campaign platforms to cut or abolish
the sales tax.
The market saw no other market-moving cues for the current
session.
The 10-year JGB yield rose 1 bp to 1.5%
The two-year JGB yield rose 0.5 bp to 0.76%
and the five-year yield rose 1 bp to 1.03%.