TOKYO: Japanese government bond (JGB) yields fell on Monday, underpinned by a pause in a climb in US Treasury yields during the Asian trading hours.

The 10-year JGB yield fell 0.5 basis point (bp) to 0.410%. The 20-year JGB yield fell 0.5 bp to 1.025% and the 30-year JGB yield fell 1.5 bps to 1.260%.

The yield fell even as the Bank of Japan cut the amount of bonds it offered to buy at its regular bond buying.

The BOJ offered to buy 200 billion yen ($1.48 billion) of 10-25 year JGBs at its regular bond buying earlier in the session, compared with 250 billion yen at the previous offer.

JGB yields rise ahead of central bank meetings in US, Europe

“Overall, U.S. yields are on the decline with the expectation that the Federal Reserve will pause its rate hike, so Japanese yields are unlikely to rise,” said Hiroshi Namioka, chief strategist and fund manager, T&D Asset Management.

The 40-year JGB yield fell 2 bps to 1.445%.

The five-year yield fell 0.5 bp to 0.115% and the two-year JGB yield was flat at -0.040%.

Benchmark 10-year JGB futures rose 0.21 yen to 148.66, with a trading volume of 15,148 lots.