Demand for 10-Year Japanese Government Bonds at Auction Exceeds 12-Month Average

According to Jinse Finance, demand for Japan's 10-year government bond auction exceeded the 12-month average, as expectations for a central bank rate hike have diminished and upward pressure on long-term bond yields has eased. The bid-to-cover ratio for this auction was 3.51, higher than the previous auction's 3.66 last month and above the 12-month average of 3.14. Another sign of strong demand is the 0.03 difference between the average price and the lowest accepted price, compared to 0.01 in the previous auction. Since the end of May, Japan's sovereign bond auctions have drawn significant attention after a lackluster response to the 20-year government bond auction pushed super-long bond yields to record highs. The surge in Japanese government bond yields has impacted global bond markets, with investors remaining cautious about the country's widening government deficit.