Demand at Thursday's 30-year Japanese government bond auction exceeded the 12-month average, with a bid-cover ratio of 3.79 — down from 3.86 at the prior auction but above the 12-month mean of 3.52. The tail was 28 bps, up from 21 bps a month earlier. JGB futures held gains after the results. The auction occurred amid a global government bond selloff; rising oil has heightened inflation concerns and pushed up rate-hike expectations. Overnight index swaps now fully price a BOJ rate increase for S

Demand at Thursday's 30-year Japanese government bond auction exceeded the 12-month average, with a bid-cover ratio of 3.79 — down from 3.86 at the prior auction but above the 12-month mean of 3.52. The tail was 28 bps, up from 21 bps a month earlier. JGB futures held gains after the results. The auction occurred amid a global government bond selloff; rising oil has heightened inflation concerns and pushed up rate-hike expectations. Overnight index swaps now fully price a BOJ rate increase for Sept. 18. Hawkish BOJ board member Takata has signalled openness to large and consecutive hikes.