Wires

JGB yields hit fresh 3-year lows as global bond rally persists

TOKYO, Aug 13 (Reuters) - Japanese government bond prices continued to gain on Tuesday, the first trading day after Tokyo's long weekend, with yields hitting fresh three-year lows, building on a global bonds rally.

The key 10-year JGB yields fell 1 basis point to minus 0.235%, its lowest level since late July 2016 and somewhat below the Bank of Japan's allowed range of "about minus 0.2% to 0.2%."

BOJ Governor Haruhiko Kuroda said last year that the central bank roughly defines its policy target of "around zero percent" for the 10-year yield as "approximately 20 basis points above or below zero percent."

Benchmark 10-year JGB futures rose 0.18 point to a record close of 154.91, extending gains from last week.

The 20-year JGB yield fell 2.5 bps to 0.070%, while the 30-year JGB yield fell 3 bps to 0.185%, both to hit fresh three-year lows.

At the shorter end of the market, the five-year JGB yield fell 1 bp to a new three-year low of minus 0.315%, while the two-year JGB yield fell 1.5 bps to a 2-1/2-year low of minus 0.290%.

U.S. Treasury yields fell on Monday, with the key 10-year yield falling to 1.640%, in line with the weak stock market, as U.S.-China trade worries and global political tensions from Hong Kong to Argentina supported the safe-haven assets. (Reporting by Tokyo Markets Team; Editing by Rashmi Aich)