TOKYO: The yield on 10-year Japanese government bonds fell on Thursday to its lowest in nearly five months, following a retreat in US Treasury yields, while strong response to a domestic liquidity auction lifted investor sentiment.

The liquidity auction held by Japan's finance ministry received bids worth 4.42 times, higher than a bid-cover-ratio of 4.28 at the previous auction.

The 10-year JGB yield fell two basis points to 0.045%, the lowest since Jan. 29. The 20-year JGB yield fell one basis point to 0.420%.

US Treasury yields fell overnight for a second day as traders positioned for inflation data due on Thursday and showed strong demand at an auction.

• The 30-year JGB yield fell one basis point to 0.655%.

  • The two-year JGB yield was flat at minus 0.125%.

  • The five-year yield fell one basis point to minus 0.115%.

  • The 40-year JGB yield fell 0.5 basis point to 0.705%.

  • Benchmark 10-year JGB futures rose 0.18 point to 151.89, with trading volume of 48,775 lots.