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JGB yields drop to multi-month lows on virus fears, oil price crash

SYDNEY, March 9 (Reuters) - Japanese government bond (JGB) yields fell on Monday, with the benchmark 10-year yield at a five-month low, as investors rushed to safe havens on worries about the economic fallout of the coronavirus outbreak and a plunge in oil prices.

Benchmark 10-year JGB futures rose 0.68 point to 155.32, marking the second-biggest daily gain since February 2016, when the Bank of Japan introduced negative interest rates.

The 10-year cash JGB yield fell 1.5 basis points to minus 0.155%, having briefly hit the lowest since October of minus 0.200%.

The 20-year yield fell 4 basis points to 0.140%, while the 30-year and the 40-year yields lost 5.5 basis points each to 0.255% and 0.270%, respectively.

At the shorter end of the market, the two-year yield dropped 2.5 basis points to minus 0.315%, while the five-year yield fell 3 basis points to minus 0.305%.

Investors, meanwhile, drove down the 30-year U.S. bond yield below 1% on bets the Federal Reserve would be forced to cut interest rates by at least 75 basis points at its March 18 meeting, despite delivering an emergency easing last week.

The yield on the 10-year U.S. Treasuries plunged to as low as 0.469% in Asian trade, having halved in just three sessions. (Reporting by Tokyo Markets Team; Editing by Aditya Soni)

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