JGBs mostly firm as market awaits 10-year sale

TOKYO, Feb 29 (Reuters) - Japanese government bonds were broadly firmer on Monday, while the benchmark note was steady ahead of the next day's 10-year JGB sale.

The 10-year JGB yield was flat on the day at minus 0.065 percent, after earlier retracing an all-time low of minus 0.075 percent touched on Friday.

The Ministry of Finance will auction 2.4 trillion yen ($21.18 billion) of 10-year JGBs on Tuesday.

In the superlong zone, the 20-year yield edged down half a basis point to 0.540 percent, after earlier hitting a fresh record low of 0.535 percent. The 30-year yield also eased half a basis point to 0.850 percent, not far above last week's record low of 0.840 percent.

JGB yields have been dropping steadily since the Bank of Japan adopted a negative interest rate policy on Jan. 29.

March 10-year JGB futures added 0.07 point to end at 152.16.

Earlier on Monday, the BOJ offered to buy 400 billion yen of 1- to 3-year JGBs, 420 billion yen of 3- to 5-year JGBs, 260 billion yen of 10- to 25-year JGBs, and 180 billion yen of JGBs maturing in more than 25 years under its massive asset purchase programme.

Government data released early on Monday showed Japan's industrial output rose the most in a year in January, tentatively signalling a pick up in factory activity, though the figures had a muted impact on JGBs as the outlook remains murky.

($1 = 113.2900 yen) (Reporting by Tokyo markets team; Editing by Shri Navaratnam)