JGBs edge higher as Asia market selloff deepens

TOKYO, Oct 26 (Reuters) - Japanese government bond prices edged mostly higher on Friday, with the benchmark futures reaching fresh three-month highs on safe-haven demand as Asian shares plunged to 20-month lows.

Ten-year JGB futures closed 0.07 point higher at 150.72, their highest level since late July, with a trading volume of 59,947 lots.

The 10-year JGB was flat at 0.110 percent, while the 20-year JGB yield shed 0.5 basis point to 0.630 percent.

The two-year JGB yield and five-year JGB yield also dropped half basis point each, to minus 0.125 percent and 0.085 percent, respectively.

The 30-year JGB yield was flat at 0.860 percent, while the 40-year JGB yield edged half a basis point higher to 1.025 percent.

The market was supported by caution after a fresh round of volatility hit Asian equity markets.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped more than one percent, hitting its lowest level since February 2017.

(Reporting by Tokyo Markets team; Editing by Sunil Nair)