Key bond yield hits 1.5-year low after BOJ monetary easing.
The yield on the benchmark Japanese government bond ended at its lowest level in nearly one and a half years Friday after the Bank of Japan decided to loosen its monetary policy by stepping up purchases of Japanese government bonds.
The yield on the No. 321, 1.0 percent issue, the main barometer of long-term interest rates, was down 0.025 percentage point from Thursday's close, ending interdealer trading at 0.885 percent, the lowest closing level for a benchmark 10-year issue since late October 2010.
Investors also bought safe-haven Japanese bonds after a rating downgrade for Spanish government bonds added to concern about the eurozone sovereign debt crisis, dealers said.
The price of the June futures contract for 10-year bonds gained 0.27 point to 143.12 on the Tokyo Stock Exchange.