TOKYO, March 29 (Reuters) - Japanese government bond prices dipped on Thursday as the yen weakened slightly, partly on hopes that tensions over North Korea's nuclear programme may ease following recent diplomatic initiatives.
Ten-year JGB futures fell 0.01 point to 150.85, with a mediocre trading volume of 21,871 lots, with many investors on the sidelines ahead of the end of quarter. For Japan, March 31 is also the end of financial year.
The benchmark 10-year JGB yield rose 1 basis point to 0.040 percent while the 20-year JGB yield rose 1 basis point to 0.525 percent.
The two-year JGB yield rose 1 basis point to minus 0.145 percent.
An auction of 2.2 trillion yen two-year JGBs on Thursday was supported by solid demand from domestic investors, traders said. (Reporting by Tokyo Markets Team; Editing by Amrutha Gayathri)