TOKYO, June 24 (Reuters) - Japan's 10-year government bond (JGB) yields tracked U.S. Treasury peers lower on Friday, as worries of aggressive rate hikes by the Federal Reserve triggering a recession weighed on sentiment.
The 10-year JGB yield fell 1 basis point to 0.220% and the 20-year JGB yield fell 0.5 basis point to 0.895%.
U.S. Treasury yields fell to two-week lows overnight, on concerns that the Fed will cause a recession by aggressively hiking interest rates, and on a growing belief that yields may have topped for the near term even if inflation stays high.
"Recession is inevitable," said Kazuhiko Sano, chief fixed income strategist at Tokai Tokyo Securities.
"But to what extent the economy would slow totally depends on the Federal Reserve Bank's pace of the rate hikes."
Benchmark 10-year JGB futures rose 0.3 point to 148.68, with a trading volume of 11,358 lots.
The 30-year JGB yield was flat at 1.225%, while the 40-year JGBs were not traded and the yield remained at 1.315%.
The two-year JGB yield rose 0.5 basis point to -0.085%.
The five-year yield was flat at 0.045%. (Reporting by Tokyo markets team; Editing by Rashmi Aich)