TOKYO: Japanese government bond yields rose on Wednesday as their US peers hit multi-year highs after comments from Federal Reserve about potential rapid reductions in their bond holdings.

Federal Reserve Governor Lael Brainard on Tuesday flagged rapid reductions to the Fed's balance sheet may begin as soon as May, driving two-, five- and 10-year yields to multi-year highs during Asian trade.

The 10-year JGB yield rose two basis points to 0.20%, approaching the level which prompted the Bank of Japan to step in the market to defend the bank's yield target.

Yields on longer ended notes rose sharply ahead of an auction for 30-year bonds on Thursday. The 20-year JGB yield rose 3.5 basis points to 0.755% and the 30-year JGB yield climbed 4.5 basis points to 1.010%.

The 40-year JGB yield jumped 5.5 basis points to 1.080%.

JGB yields fall on BOJ’s bond-buying operation

The two-year JGB yield rose 0.5 basis point to minus 0.040%. The five-year yield rose two basis points to 0.035%.

Benchmark 10-year JGB futures fell 0.43 point to 149.33, with a trading volume of 18,033 lots.