Japanese government bonds eased on Friday, ahead of key US jobs data which could give a clearer picture of the outlook for the world's largest economy, and as risk assets outperformed, boosted by investors betting on a further drop in the yen. Tokyo's Nikkei average advanced 0.5 percent to log its 12th straight week of gains, its longest such winning streak since 1959, as the yen hit a 32-month low against the dollar on mounting expectations that the central bank would step up policy easing.
The 10-year yield added 1.5 basis points to 0.765 percent, and was up 4 basis points this week, while 10-year bond futures fell 24 ticks to 144.06, below their five-day average of 144.16 but above their 20-day moving average of 144.05. Yields on the 20-year bond inched 0.5 basis point higher to 1.775 percent.
But the 30-year debt outperformed, with their yields dipping 0.5 basis point to 1.980 percent. According to Thomson Reuters Datastream, the spread between the Topix index's dividend yield and the 10-year bonds fell to 1.22 percent on Wednesday, its narrowest since April 2012.
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