TOKYO, Aug 2 (Reuters) - Japanese government bonds barely budged on Wednesday, with the benchmark 10-year cash bonds untraded in the morning due to a lack of trading incentives, showing limited response to gains in U.S. bond prices.
The 10-year benchmark JGB yield was unchanged at 0.070 percent, while the 30-year yield was also flat at 0.875 percent.
While U.S. bond prices gained on Tuesday on weak auto sales data, any boost from the U.S. bond market was offset by generally risk-positive sentiment as Japanese share prices gained following upbeat earnings from Apple Inc.
Thursday will see an auction of 10-year inflation-linked JGBs. They have been under pressure due to diminishing inflation expectations.
The breakeven inflation rate, or the yield gap between conventional and inflation-linked JGBs, shrank to 36.5 basis points, the narrowest level since October last year. (Reporting by Tokyo Markets Team; Editing by Biju Dwarakanath)