JGBs rise tracking US Treasury rally; BOJ's tapering plans eyed

TOKYO, June 12 (Reuters) - Japanese government bonds rose on Thursday, underpinned by the overnight rally in U.S. Treasuries, while the market cautiously awaited the Bank of Japan's (BOJ) plans on bond tapering.

The 10-year JGB yield JP10YTN=JBTC fell 1 basis point (bp) to 1.445% by the midday break.

Yields on U.S. Treasuries declined for the third straight day on Wednesday as positive news on inflation and U.S.-China trade relations boosted investor demand. US/

Yields move inversely to prices.

"As investors saw little market-moving cues today, the yields simply tracked U.S. Treasury yields' declines," said Masahiro Yamaguchi, head of the investment research department at SMBC Trust Bank.

"The attention is now on how the BOJ would proceed with its bond buying operations going forward."

After long-term yields scaled record peaks last month, the market has focused on whether the BOJ would maintain or slow down the current pace of tapering.

At its two-day meeting ending June 17, the BOJ is expected to make no big changes to the current taper plan and consider slowing the pace of tapering from the next fiscal year.

The 20-year JGB yield JP20YTN=JBTC shed 1.5 bps to 2.365% and the 30-year JGB yield JP30YTN=JBTC lost 1.5 bps to 2.9%. The five-year yield JP5YTN=JBTC fell 1 bp to 1.005%.