TOKYO, March 12 (Reuters) - Japanese government bond yields tracked declines in their euro zone and U.S. counterparts on Thursday, with a firm outcome to a five-year debt auction also favouring the market.
The benchmark 10-year JGB yield fell 3.5 basis points to 0.380 percent, pulling further away from a four-month peak of 0.470 percent on Tuesday.
The 20-year yield dropped 3.5 basis points to 1.195 percent.
The bid-to-cover ratio, a gauge of demand, at Thursday's 2.7 trillion yen ($22.23 billion) five-year JGB auction rose to 3.64 from 3.29 at the previous auction last month, underscoring decent investor demand.
Weak debt auctions have shaken the JGB market several times this year, as investor demand has sometimes proved inconsistent amid wide price swings - a consequence of lower liquidity caused by the Bank of Japan's extensive bond-buying scheme.
The launch of the European Central Bank's 1 trillion euro bond buying scheme this week has driven many euro zone yields deeper into negative territory and others to all-time lows.
U.S. Treasuries also experienced yield declines overnight, helped by strong foreign investor bids for new 10-year notes. ($1 = 121.4800 yen) (Reporting by Tokyo markets team; Editing by Kim Coghill)