TOKYO: Japanese government bond (JGB) yields fell on Monday after a closely watched US employment report showed mixed results at the end of last week.

The 10-year JGB yield fell 0.5 basis point to 0.230% and the 20-year JGB yield fell 1 basis point to 0.895%. The 30-year JGB yield fell 1 basis point to 1.250%.

The August US payrolls report showed stronger-than-expected hiring but a climb in the unemployment rate to 3.7% eased some concerns about the Federal Reserve being overly aggressive in raising interest rates as it attempts to bring down high inflation.

“Outcome of the US jobs data was mixed,” said a market participant at a domestic brokerage.

A market participant at a local bank said there was a demand for bonds from investors who had shorted bonds ahead of the US jobs report.

The 40-year JGB yield fell 1 basis point to 1.400%. Yields on short ends also fell with the two-year JGB yield falling 0.5 basis point to -0.090% and the five-year yield falling 1 basis point to 0.010%.

JGB 10-year yields edge higher as investors brace for Jackson Hole

Investors may turn cautious after buying bonds as US market will be closed on Monday for the labour day holiday, other participants said.

Benchmark 10-year JGB futures rose 0.24 point to 149.51, with a trading volume of 7,849 lots.