JGBs trade in tight range amid strong price data, firm BOJ bond buying operation

TOKYO, June 20 (Reuters) - Japanese government bonds moved in a narrow range on Friday as investors weighed strong price data in Tokyo, while a solid outcome of the Bank of Japan's bond buying operation supported sentiment.

The 10-year JGB yield inched up 0.5 basis point to 1.415%, after rising to as high as 1.42% earlier in the day.

Data showed Japan's core inflation hit a more than two-year high in May and exceeded the Bank of Japan's 2% target for well over three years.

"Investors sold JGBs in the morning as bets for the BOJ's interest rate hike rose after they saw strong price data," said Keisuke Tsuruta, a senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities.

"But the BOJ's bond buying operation for durations between five and 10 years was strong, which prompted them to buy back bonds," he said.

The five-year JGB yield was flat at 0.955% after falling 5 basis points in the previous session as investors covered short positions after a strong auction outcome.

The two-year JGB yield was flat at 0.72%.

The 20-year JGB yield rose 1.5 bps to 2.375%.

The 30-year JGB yield rose 0.5 bp to 2.92%.

The 40-year JGB yield rose 2 bps to 3.1%.

(Reporting by Junko Fujita; Editing by Mrigank Dhaniwala)