Japan’s latest 40-year government bond auction drew the strongest demand seen since 2020, helped by relatively high yields that attracted investors. The bid-to-cover ratio came in at 3.1, above the previous auction’s 2.82 and also higher than the 12-month average of 2.67. After the sale, Japanese government bond futures extended their gains, while the 40-year yield was last at 4.23%.
The auction took place as investors grow more concerned that the Bank of Japan may be falling behind the curve on monetary tightening. Earlier this month, after a rate increase that had been widely expected by the market, Bank of Japan Governor Kazuo Ueda did not offer clear guidance on the pace of future hikes. That has added to expectations that the central bank may eventually need to raise rates more aggressively.
Japan’s 40-year government bond auction drew its strongest demand since 2020 on Sept. 29, as relatively high yields attracted investors, according to BlockBeats.
The auction’s bid-to-cover ratio was 3.1, up from 2.82 at the previous sale and above the 12-month average of 2.67. After the auction, Japanese government bond futures continued to rise. The 40-year government bond yield was last at 4.23%.
The debt sale came as investors increasingly worry that the Bank of Japan may be behind the curve on monetary tightening. Earlier this month, after a rate hike that had been widely expected by the market, Bank of Japan Governor Kazuo Ueda did not provide clear guidance on the pace of future increases. That has intensified expectations that the BOJ may ultimately need to raise rates more aggressively.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
