TOKYO, Jan 30 (Reuters) - Yields on five-year Japanese government bonds (JGBs) fell on Monday, supported by a firm outcome of the Bank of Japan's bond buying and ahead of the central bank's offer of 5-year loans to investors.
The five-year bond yield fell 1.5 basis points to 0.175%.
"The outcome of the BOJ's bond buying for 3-5 years JGBs was firm, suggesting tightening of supply and demand," said Keisuke Tsuruta, fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities.
"Investors wanted to sell bonds to BOJ only at higher prices."
The BOJ last week announced that it would provide five-year loans against collateral to banks, a move aimed at encouraging investors to buy five-year JGBs.
The five-year bond yield, which rose to as high as 0.2% on Friday, fell since the funding announcement.
The benchmark 10-year JGB yield was flat at 0.475%.
Yields on super-long notes rose, with the 20-year JGB yield climbing 1 basis point to 1.380%. The 30-year JGB yield rose 0.5 basis point to 1.570%.
The two-year JGB yield was flat at -0.005%.
The 40-year JGB yield was flat at 1.810%.
Benchmark 10-year JGB futures rose 0.13 yen to 146.86, with a trading volume of 18,837 lots. (Reporting by Junko Fujita; editing by Uttaresh.V)
