Japan's super-long dated bonds rise after sharp sell-off

By Junko Fujita

TOKYO, July 11 (Reuters) - Japan's super-long government bonds rose on Friday, as investors bought them back after a heavy sell-off this week, with a firm outcome of the Bank of Japan's bond buying operations supporting sentiment.

The 20-year JGB yield JP20YTN=JBTC fell 0.5 basis point (bp) to 2.5%. The 30-year JGB yield JP30YTN=JBTC fell 2.5 bps to 3.04%.

Yields move inversely to bond prices.

"The decline in yields on super-long dated bonds is a response to the sell-off earlier this week," said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management.

The BOJ's bond buying operation saw firm outcome around the bonds with maturities of more than 25 years, which supported sentiment, he said.

The yields on 20- and 30-year bonds surged this week as the market weighed the risk of the defeat of the Liberal Democratic Party and its coalition partner Komeito at the upcoming upper house election.

The potential defeat could give power to opposition parties that have pledged in their campaign platforms to cut or abolish the sales tax.

The market saw no other market-moving cues for the current session.

The 10-year JGB yield JP10YTN=JBTC rose 1 bp to 1.5%

The two-year JGB yield JP2YTN=JBTC rose 0.5 bp to 0.76% and the five-year yield JP5YTN=JBTC rose 1 bp to 1.03%.