TOKYO, April 30 (Reuters) - Japanese government bond yields dropped sharply on Tuesday, catching up with a slide in U.S. Treasury yields as Japanese markets reopened following a national holiday.
The 10-year JGB yield declined 5.5 basis points (bps) to 0.865% as of 0453 GMT, on track for its steepest one-day decline since Dec. 20.
On Friday, it had risen as high as 0.93% for the first time since Nov. 2. The rise came a day after equivalent U.S. yields climbed to 4.739%, also the highest since Nov. 2.
Since then, the benchmark Treasury yield has dropped as much as 13.6 bps to 4.605% ahead of crucial market events this week, with the Federal Reserve deciding policy on Wednesday and monthly U.S. jobs data due on Friday.
Meanwhile, there is little impetus for JGB yields to rise based on domestic factors, after Bank of Japan Governor Kazuo Ueda signalled on Friday that monetary conditions would remain easy for now, and there would be no imminent tapering of its monthly bond purchases.
The BOJ will publish the May schedule for bond purchases - known locally as rinban - at 0800 GMT, with no alterations expected.
"Given Ueda's dovish comments on Friday, what would be the rationale for changing rinban now?" said Shoki Omori, chief Japan desk strategist at Mizuho Securities. "It would completely contradict what he said."
Benchmark 10-year JGB futures rose 0.62 yen to 144.55, rebounding from a near six-month low of 143.73 reached on Friday. When bond prices rise, yields fall.
The two-year yield slid 3 bps to 0.265%, and the five-year yield fell 4 bps to 0.465%. The 20-year yield sank 4.5 bps to 1.640%. The 30-year yield lost 3.5 bps to 1.925%. (Reporting by Kevin Buckland; Editing by Subhranshu Sahu)
