Japanese government bond yields declined on Wednesday, following

a drop in U.S. Treasury yields overnight, while BOJ Governor

Kazuo Ueda's comments last week about potentially increasing

regular bond buying boosted investor appetite.

The 10-year JGB yield fell to 1.32% earlier

in the session, its lowest level since February 12. It was last

at 1.365%, down 1.5 basis points (bps) from the previous

session.

"JGB yields turned their course last week after BOJ

Governor's remarks. And U.S. Treasury yields started falling

subsequently," said Katsutoshi Inadome, senior strategist at

Sumitomo Mitsui Trust Asset Management.

Governor Kazuo Ueda said last week the central bank was

ready to increase government bond buying if long-term interest

rates rise sharply.

His comments came as yields hit more-than-a-decade highs on

expectations for the BOJ's aggressive rate hike.

Overnight, U.S. Treasury yields dropped sharply, with the

benchmark 10-year yield hitting its lowest in 10 weeks, as

investors sought refuge in bonds from signs of deceleration in

the U.S. economy and persistent uncertainty about the effects of

tariffs pursued by President Donald Trump.

The two-year JGB yield was flat at 0.795%

after falling to 0.78%. The five-year yield fell

to as low as 0.98%, its lowest since February 10, and was last

down 1 bp to 1.02%.

The 20-year JGB yield fell 1 bp to 2.025% and

the 30-year JGB yield was down 0.5 bp to 2.325%.

The 40-year JGB yield fell 1.5 bps to 2.59%.