TOKYO: Japanese government bond yields fell on Wednesday ahead of an expected US Federal Reserve announcement of its first interest rates hike in three years, as a drop in oil prices soothed investor nerves about rising inflation.

The 10-year JGB yield fell 0.5 basis point to 0.200%. The 20-year JGB yield fell 1.5 basis points to 0.680%.

Oil had settled below $100 on Tuesday, the first time since late February. Trading sessions have been volatile since Russia’s invasion of Ukraine on Feb. 24, with prices hitting 14-year highs on March 7, but since then Brent has fallen nearly $40 a barrel and WTI about $34.

Yields fell as the Bank of Japan’s bond buying operations witnessed relatively firm results.

The 20-year JGB yield fell 1.5 basis points to 0.680%.

The 30-year JGB yield fell 0.5 basis point to 0.900%.

The 40-year JGB yield fell 1.5 basis points to 0.920%.

The two-year JGB yield was flat at minus 0.030%.

The five-year yield fell 0.5 basis point to 0.030%.

Benchmark 10-year JGB futures rose 0.05 point to 150.08, with a trading volume of 12,338 lots.