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JGB yields track a slide in peers after BoE bond-buying

TOKYO, Sept 29 (Reuters) - Japanese government bond yields fell almost across the board on Thursday, tracking global peers after the Bank of England announced an emergency bond-buying programme in order to cool down a plummeting gilt market.

The two-year JGB yield fell half a basis point to minus 0.050%, and the five-year yield also fell half a basis point to 0.075%.

The 20-year JGB yield fell 4.5 basis points to 1.000%, the 30-year yield fell 7.5 basis points to 1.395%, and the 40-year JGB yield fell 9.5 basis points to 1.600%.

U.S. Treasuries also got a boost from the BoE's action overnight. The benchmark 10-year yield was last at 3.8198%, having broached 4% the previous day.

The 10-year JGB yield was flat at 0.245%, however. The Bank of Japan conducted unscheduled bond-buying operations of its own earlier this week in an attempt to tamp down the 10-year yield, which its policy caps at 0.25%.

Some market participants expressed scepticism that the BoE's move would work in the long run, citing ongoing concerns about inflation and future interest rate hikes.

"Panicked movements have calmed down, but the incompatibility of fiscal expansion and monetary tightening in government policy hasn't been solved," said a domestic banker. "The possibility for market turbulence remains."

Benchmark 10-year JGB futures rose 0.19 point to 148.17. (Reporting by Sam Byford and Tokyo markets team; editing by Uttaresh.V)

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