TOKYO, May 14 (Reuters) - Japanese government bond futures rose and yields on most cash bonds fell on Friday after a Bank of Japan debt-buying operation showed that investors have solid demand for long-term notes.
The focus shifts to a busy auction calendar, which will be a major test of the market's ability to take on new supply amid rising worries about an acceleration in U.S. inflation, which is normally bearish for bond prices.
Japan's finance ministry will auction 5-year, 10-year, and 20-year debt next week, and bond traders will closely analyse the results for any signs of a pick-up or decline in investor demand, which could have a big impact on the yield curve.
Benchmark 10-year JGB futures rose 0.12 point to 151.37, with a trading volume of 15,004 lots.
The 10-year JGB yield fell 1 basis point to 0.080%, and the 20-year JGB yield fell 2 basis points to 0.440%.
The 30-year JGB yield fell 2 basis points to 0.650%.
At the long-end of the curve, the 40-year JGB yield fell 1 basis point to 0.705%.
The five-year yield fell 0.5 basis point to minus 0.095%.
At the short-end, the two-year JGB yield was unchanged at minus 0.130%. (Reporting by the Tokyo markets team, Editing by Sherry Jacob-Phillips)