TOKYO: The benchmark 10-year Japanese government bond yield dropped to a record low on Thursday as investors moved down the curve seeking higher yielding debt in a holiday-thinned market.

The 10-year yield dropped 2 basis points to 0.310 percent, its lowest on record.

Highlighting how low yields have become under the Bank of Japan's qualitative and quantitative easing policy, through which it buys large amounts of short-term debt, two-year government bonds were sold for the first time at negative yields.

Copyright Reuters, 2014