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TOKYO: Japanese government bond yields fell on Friday amid caution in the run-up to a key US jobs report, while a moderately firm outcome for the central bank’s bond buying operations underpinned sentiment.

The 10-year JGB yield fell 1 basis point to 0.230% and the 20-year JGB yield fell 2.5 basis points to 0.745%.

The US non-farm payrolls report for May - due later in the day - is likely to keep the Federal Reserve on track to raise interest rates by half a percentage point a few more times this year.

Benchmark 10-year JGB futures rose 0.17 point to 149.86, with a trading volume of 17,956 lots, boosted by demand for covering short positions.

JGB yields track US yields higher, boost demand at 10-year auction

The 30-year JGB yield fell 1.5 basis points to 1.025% and the 40-year JGB yield fell 2 basis points to 1.115%.

The two-year JGB yield fell 0.5 basis point to -0.075%.

The five-year yield fell 0.5 basis point to minus 0.010%.

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