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imageTOKYO: Japanese government bond yields dropped to new record lows on Tuesday as fears that Britain will vote to leave the European Union hurt equities and sent investors scurrying into safe-haven debt.

The benchmark 10-year JGB yield fell as low as minus 0.170 percent, before edging back to minus 0.165 percent.

The 20-year yield was down half a basis point at 0.165 percent after touching 0.155 percent, also a fresh record low.

JGB yields pulled back slightly from record lows after the Bank of Japan did not conduct a regular debt-buying operation on Tuesday as some in the market had expected.

JGBs were bound in tight range as a wait-and-see mood prevailed ahead of the Federal Reserve's two-day policy meeting starting later on Tuesday.

Investors are also looking to the Bank of Japan's policy decision on Thursday. Most economists polled by Reuters expect the BOJ to keep settings unchanged this month but ease again at its meeting in late July.

Japan's Nikkei fell 1.3 percent to a two-month low.

Copyright Reuters, 2016

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