TOKYO: Super long-dated Japanese government bond (JGB) yields fell to more than two week lows on Thursday, tracking US Treasuries yields lower, amid an auction for 20-year notes.

The 20-year JGB yield fell 2.5 basis points to 1.030%, hitting its lowest since Oct 31.

The 30-year JGB yield fell 2.5 basis points to 1.410% and the 40-year JGB yield fell 4 basis points to 1.625%, also their lowest since Oct. 31.

“The market sentiment was good since the open because of the declines in overseas yields, particularly those on US Treasuries.” said Keiko Onogi, senior JGB strategist at Daiwa Securities.

“The outcome of the auction was relatively firm and in line with expectations,” The auction received bids worth 3.03 times the amount available, lower than a bid-cover ratio of 3.26 at the previous auction.

Overnight, long-dated US Treasury yields fell after a strong retail sales report boosted expectations that the Federal Reserve will continue hiking rates.

Yields on Japan’s shorter-ended notes were flat.

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The 10-year JGBs were bit traded and the yield stayed at 0.240%.

The five-year bonds were not traded and the yield was at 0.065%. The two-year JGB yield was flat at -0.045%.

Benchmark 10-year JGB futures rose 0.1 point to 149.46, with a trading volume of 12,221 lots.