TOKYO, Dec 6 (IFR) - JGB prices dropped on Friday, with the 10-year yield rising to seven-week highs, after expectations the U.S. Federal Reserve could soon pare its bond-buying programme lifted U.S. and European bond yields.
The current 10-year JGB yield rose 1.5 basis point to 0.660 percent, its highest level since mid-October, while the 20-year yield rose 2.0 basis points to 1.500 percent .
The market was also slightly weighed down by a torrent of corporate and municipal bond issues on Friday. Traders say Friday's non-governmental bond issues are one of the heaviest in many years.
Investor demand for these new bonds is strong, as the Bank of Japan's massive bond buying is leading to a shortage of bonds, market players said.
The benchmark December 10-year JGB futures fell 0.12 point to 144.70.