Demand at Tuesday's five-year JGB auction was the strongest since June 2025 as higher yields attracted buyers. The bid-cover ratio was 4.15 versus 3.43 at the prior auction and a 12-month average of 3.34. The tail (average price minus lowest accepted price) tightened to 0.02 from 0.03 a month earlier. JGB yields have risen in recent weeks amid reports the TAKAICHI-led government supports near-term tightening by the BANK OF JAPAN; overnight index swaps imply a 75% chance of a BANK OF JAPAN hike b

Demand at Tuesday's five-year JGB auction was the strongest since June 2025 as higher yields attracted buyers. The bid-cover ratio was 4.15 versus 3.43 at the prior auction and a 12-month average of 3.34. The tail (average price minus lowest accepted price) tightened to 0.02 from 0.03 a month earlier. JGB yields have risen in recent weeks amid reports the TAKAICHI-led government supports near-term tightening by the BANK OF JAPAN; overnight index swaps imply a 75% chance of a BANK OF JAPAN hike before September and fully price an October move. The rise in yields reflects weakening global confidence in bonds, with investors demanding greater compensation for duration risk. 30-year US Treasury yields climbed to near 20-year highs on concerns about higher government spending, heavy long-term issuance and persistent inflation.