TOKYO, March 26 (Reuters) - Japanese government bond prices gained on Thursday on rising expectations Japan would impose more radical social distancing measures to arrest the breakneck spread of the coronavirus.
A recovery in U.S. stock futures triggered by a $2 trillion stimulus package has run out of steam, further boosting demand for safe-haven assets such as government bonds.
Benchmark 10-year JGB futures 2JGBv1 rose 0.70 point to 152.61, though the trading volume was light at 13,667 lots.
The 10-year JGB yield JP10YTN=JBTC fell 2.5 basis points to 0.005%, off a 16-month high of 0.095% touched a week ago.
Tokyo's governor has advised against non-essential outings until April 12, and the Japanese government was preparing to set up special headquarters to deal with the outbreak as early as Thursday afternoon.
The 20-year JGB yield JP20YTN=JBTC was flat at 0.295%, while the 30-year JGB yield JP30YTN=JBTC was also unchanged at 0.415%.
The two-year JGB yield JP2YTN=JBTC fell 1 basis point to minus 0.260%, the lowest level in two weeks, while the five-year yield JP5YTN=JBTC fell 1 basis point to minus 0.115%.
The 40-year JGB yield JP40YTN=JBTC rose 1 basis point to 0.445%, however, as the market absorbed fresh supply from a 400 billion yen ($3.62 billion) 40-year JGBs auction on Thursday.
The bid-to-cover at the auction dropped to 2.66 from 2.86 in the previous auction.
($1 = 110.5600 yen)
(Reporting by Tokyo Markets Team; Editing by Devika Syamnath)
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