TOKYO, Nov 16 (Reuters) - Japanese government bond (JGB) yields fell on Wednesday, tracking U.S. Treasury yields lower, as demand for safe-haven assets increased amid geopolitical tensions after a missile landing in Poland killed two people.
The 20-year JGB yield fell 2.5 basis points (bps) to 1.045% ahead of an auction for notes with the same maturity in the next session.
The 30-year JGB yield fell 3 bps to 1.425%, while the 40-year JGB yield fell 3.bps to 1.650%.
"Geopolitical tensions are one of the factors for declines in yields, but the declines were also driven by data that showed slowing U.S. inflation," said Takayuki Miyajima, senior economist at Sony Financial Group.
NATO member Poland said on Wednesday that a Russian-made rocket killed two people in eastern Poland near Ukraine, and it summoned Russia's ambassador to Warsaw for an explanation after Moscow denied it was responsible.
Data, overnight, showed U.S. producer prices increased less than expected in October, signalling that inflation was starting to subside.
Yields on shorter ends were flat, with the 10-year JGB yield remaining at 0.240% and the five-year yield at 0.065%.
The two-year JGBs did not trade and the yield stayed -0.050%.
Benchmark 10-year JGB futures fell 0.01 point to 149.42, with a trading volume of 11,399 lots. (Reporting by Junko Fujita; Editing by Janane Venkatraman )
