TOKYO, April 27 (Reuters) - Japanese government bonds rose on Friday, with the benchmark 10-year futures recovering from a 2-1/2-month low hit in the previous session, after U.S. bond yields slipped back following a week-long sell-off.
The Bank of Japan maintained its policy on Friday, which was in line with expectations, but gave assurance on the continuation of its easy policy.
The dollar held near a 3-1/2-month high against a basket of currencies on Friday as higher U.S. yields prompted an unwinding of short positions in the currency while the euro was hampered by a dovish tone from the European Central Bank.
Deputy Governor Masazumi Wakatabe, seen as an advocate of reflationary policies, sided with Governor Haruhiko Kuroda and not with a lone board member calling for more easing, largely as expected.
Ten-year JGB futures climbed 0.09 point to 150.65, off Thursday’s low of 150.39, their lowest since early February.
Although JGBs are supported by the BOJ’s policy to peg the 10-year yield around zero percent, the market had been affected by a fall in U.S. bond prices this month.
The benchmark 10-year JGB yield dropped 0.5 basis point to 0.050 percent, while the 20-year JGB yield slipped 1.0 basis point to 0.530 percent.
The 30-year JGB yield dipped 0.5 basis point to 0.740 percent.
Reporting by Tokyo Markets Team, Editing by Sherry Jacob-Phillips