JGB yields track decline in US Treasury peers

TOKYO, Jan 28 (Reuters) - Japanese government bond yields fell on Tuesday, tracking the declines in U.S. Treasury yields overnight and as the Bank of Japan's (BOJ) bond-buying operations saw a firm outcome for the bonds with super-long yields.

The 10-year JGB yield fell 1.5 basis points (bps) to 1.2%.

The two-year JGB yield fell 1 bp to 0.685% and the five-year yield fell 1.5 bps to 0.87%.

U.S. Treasury yields tumbled to multi-week lows overnight as investors sought the safety of government bonds amid a rout in tech stocks on the emergence of a Chinese discount artificial intelligence model.

"Demand for bonds with super-long maturities was supported by a firm outcome of the BOJ's bond-buying operations," said Miki Den, a senior Japan rate strategist at SMBC Nikko Securities.

The BOJ, earlier in the day, offered to buy bonds with maturities between one and 25 years in its regular bond-buying operations.

The BOJ raised interest rates on Friday to 0.5%, the highest since the 2008 global financial crisis, and revised up its inflation forecasts.

SMBC Nikko's Den expects the BOJ to raise rates two more times this year, in July and December, to 1%.

"The 10-year JGB yield may rise further beyond 1.2% if the outcome of Japan's "shunto" spring wage talks is strong and prices show faster growth," said Den.

The 20-year JGB yield fell as much as 1 bp to 1.89% and was last down 0.5 bps at 1.895%.

The 30-year JGB yield fell to as low as 2.25% and was last down 0.5 bps at 2.255%.

(Reporting by Junko Fujita; Editing by Savio D'Souza)