Japan's 30-year government bond auction drew its strongest demand since 2019,
with a bid-cover ratio of 4.55, versus 2.94 at the prior auction and a 12-month
average of 3.41. Auction results lifted JGBs: 10‑year JGB futures rose and
30‑year bond prices climbed, sending the 30‑year yield down about 5bps to
4.025%. The strength came despite market concerns about fiscal policy and
inflation, as high yields attracted buyers. SMBC Nikko Securities senior rates
strategist Miki Den said: "Yields are at historically high levels; this
morning's further rise boosted demand. The ultra-long end's steepening may pause
temporarily, or mark a turn toward curve flattening."
