TOKYO: Japanese government bond (JGB) yields fell on Monday after the Bank of Japan carried out its first bond-buying operation following its pledge to boost purchases.

The 10-year JGB yield fell 0.5 basis point to 0.210%.

The Bank of Japan last week announced to ramp up scheduled bond purchases in the April-June quarter, after the 10-year yields touched 0.25%, the upper limit of the bank’s yield cap.

The rise prompted the central bank to offer buying unlimited amounts of 10-year bonds at a fixed rate of 0.25% for four straight days.

On Monday, investors witnessed moderately firm results from the operation, while the boosted offer underpinned sentiment, said a market participant.

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The 20-year JGB yield rose 0.5 basis point to 0.710%. The 30-year JGB yield rose one basis point to 0.950%.

The 40-year JGB yield rose 1 basis point to 1.005%.

Yields on shorter ended notes also fell, with the two-year JGB yield retreating 0.5 basis point to minus 0.045% and the five-year yield falling 0.5 basis point to 0.010%.

Benchmark 10-year JGB futures rose 0.06 point to 149.76, with a trading volume of 10,786 lots.