JGBs gain on relief over BOJ buying, U.S. Treasuries

TOKYO, Dec 25 (Reuters) - Japanese government bond prices gained on Wednesday, on the back of firmness in U.S. Treasuries and relief that the Bank of Japan did not reduce the size of its buying in long-dated bonds.

Benchmark 10-year JGB futures rose 0.26 point to 152.08, bouncing back from one-year low of 151.67 touched earlier this week.

The 10-year JGB yield fell 1.5 basis points to minus 0.015%, which, if sustained by close, would be the biggest fall in about a month.

The 20-year JGB yield fell 2 basis points to 0.295% while the 30-year yield also shed 2 basis points to 0.430%.

The BOJ maintained the amount of its JGB purchase in its operation, the last one scheduled this month. That gave traders relief as there was some speculation the BOJ could cut its bond buying after Governor Haruhiko Kuroda said last week that Japan's yield curve could be a bit steeper.

The BOJ bought 350 billion yen of five- to ten-year JGBs, 100 billion yen of 10- to 25-year bonds and 30 billion yen of 25- to 40-year JGBs.

Shorter yields also dropped in tandem, with the two-year JGB yield falling 1.5 basis points to minus 0.115% and the five-year yield going down 2 basis points to minus 0.110%.

U.S. Treasuries gained following strong results of the five-year notes auction on Tuesday before the Christmas holiday.

(Reporting by Tokyo Markets Team; Editing by Muralikumar Anantharaman)