Eurozone bond yields fell. German 10-year bond yield dropped 6bp to 3.431%; German 2-year down 2bp to 3.037%. Italian 10-year bond yield fell 10bp to 4.555%; Italian 2-year down 3bp to 3.46%.

Demand at Tuesday’s 10-year JGB auction exceeded the 12-month average, with a bid-cover ratio of 3.76 versus 3.29 at the previous auction and a 12-month average of 3.21. The tail (average accepted price minus lowest accepted) was 0.02 percentage points, down from 0.12 last month. Benchmark 10-year JGB yield touched 3.115%, matching the highest level since 1996; higher yields supported buying and domestic market conditions bolstered the auction after last month’s same-maturity sale cleared at around 3%. Market expectations for October rate hikes in both Japan and the U.S. have eased, and Takaichi Sanae’s government has sought to allay fears it would pursue inflationary policy or pressure the BOJ to keep borrowing costs low.

法國極右翼領導人勒龐：希望通過每年的預算逐步削減債務，最終使其降至國內生產總值（GDP）的60%。