TOKYO, June 18 (Reuters) - Japanese government bonds gained on Wednesday, tracking a rally for U.S. Treasuries overnight, as escalating tensions in the Middle East boosted demand for safe-haven assets.
The 10-year JGB yield JP10YTN=JBTC was down 2 basis points (bps) at 1.455%, as of 0413 GMT, tracking a more than 6 bps drop in equivalent U.S. Treasuries overnight. Yields fall when bond prices rise.
JGBs were also buoyed by Bank of Japan Governor Kazuo Ueda's cautious tone on further policy tightening in a press conference on Tuesday, after the monetary authority left interest rates steady, as widely expected.
Ueda's "dovish" press conference "confirms the central bank's caution about raising rates in the near future given considerable uncertainty about tariff policy," said Takayasu Kudo, Japan Economist at BofA Securities, who doesn't expect another rate hike until April of next year.
The two-year JGB yield JP2YTN=JBTC fell 2.5 bps to 0.735%, while the five-year yield JP5YTN=JBTC sank 3 bps to 1.00%.
The 20-year JGB yield JP20YTN=JBTC declined 2 bps to 2.38%. The 30-year JGB JP30YTN=JBTC lost 1 bp to 2.925%.
Benchmark 10-year JGB futures 2JGBv1 rose 0.23 yen to 138.90 yen.
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