TOKYO, July 21 (Reuters) - Japanese government bonds mostly edged higher on Friday, a day after the Bank of Japan trimmed its inflation forecasts.
The September 10-year JGB futures contract finished up 0.08 point at 150.22, its highest since June 30.
The 10-year cash JGB yield crept down half a basis point in late afternoon trading to 0.065 percent, after trading flat at 0.070 percent for most of the session.
The 20-year JGB yield added half a basis point to 0.590 percent, while the 30-year JGB yield was unchanged on the day at 0.860 percent.
The Ministry of Finance’s sale of off-the-run JGBs in a liquidity enhancing auction met solid demand, which underpinned market sentiment.
Weekly investment flow data released earlier in the session showed foreign investors turned net purchasers of Japanese bonds in the week through July 15, buying some 413.7 billion yen ($3.70 billion) after selling a similar amount in the previous week.
On Thursday, the BOJ held monetary policy steady as widely expected. It pushed back the timing for achieving its ambitious 2 percent inflation target, and slightly raised its growth projections. ($1 = 111.8200 yen) (Reporting by Tokyo markets team; Editing by Eric Meijer)