TOKYO, May 18 (Reuters) - Japanese government bond prices firmed on Monday, with the benchmark yield falling to its lowest level in more than two weeks as bond investors took their cue from stronger U.S. Treasuries.
The yield on the 10-year JGB fell 1.5 basis points to 0.375 percent, its lowest level since May 1, moving away from last week's two-month high of 0.470 percent scaled amid a global fixed-income rout.
The 10-year JGB futures price added 0.13 point to close at 147.40.
Longer maturities outperformed, with the 20-year yield and the 30-year yield both sliding 3 basis points to 1.130 percent and 1.395 percent respectively.
The 5-year yield shed half a basis point to 0.090 percent ahead of Tuesday's monthly auction of 2.5 trillion yen ($20.90 billion) of 5-year JGBs.
On Friday, U.S. Treasury prices rose and yields fell after downbeat U.S. economic data quashed expectations the U.S. central bank would begin raising interest rates as early as next month and backed the case that policymakers would hold off until September or December.
The Bank of Japan's asset-purchase operations also underpinned the market on Monday. The BOJ offered to buy 400 billion yen of JGBs in the 5-year to 10-year zone as well as 20 billion yen of inflation-linked 10-year JGBs.
The BOJ is widely expected to maintain the current pace of monetary expansion at its policy review on Friday.
BOJ Governor Haruhiko Kuroda said last week he did not see any immediate need for further monetary easing as the broad trend of inflation was steadily improving.
Japan's economy is likely to shift to an expansionary phase this fiscal year due to improvements in domestic demand, exports and a windfall from last year's decline in oil prices, the BOJ's chief economist said on Monday.
($1 = 119.5900 yen) (Reporting by Tokyo markets team; Editing by Alan Raybould)
