Japan government bond yields fall as investors wait for clues on Fed policy

On Tuesday, Japanese government bond yields decreased in line with moves in Treasuries, as investors waited further clues on the timeframe for tightening U.S. monetary policy.

The 10 year yield of the JGB fell 0.5 basis point to 0.5% as yields on equivalent Treasury notes weakened 3 basis points in Asian trading to 1.2367%, extending a 1 - 2 basis point loss from Monday.

Benchmark JGB futures rose $0.05 point to 152.39, with a trading volume of 11,950 lots.

Two and five-year yields fell 0.5 basis point each to minus 0.135% and minus 0.145%, respectively.

The thirty - year yields decreased 0.395%, while the 20-year yield was flat to 0.635%.

Trading was thinned by the Obon holiday which ran to Monday with no auctions or Bank of Japan operations on Tuesday to offer the market direction.

Federal Reserve watchers remain focused on its annual Jackson Hole, Wyoming annual symposium from Aug. 26, while Chair Jerome Powell speaks later Tuesday and minutes of the Fed's latest policy meeting are released on Wednesday.

It's still the case that most investors want to wait and see what comes out from the Jackson Hole meeting of Okasan Securities next week, said Makoto Suzuki, senior bond strategist at Jackson Hole.

There are no financial investment participants in qho actively invest now to increase its activity.