Lates News

The price of Japan's 40-year government bonds has risen, as strong demand at the auction of these bonds prior to this helped alleviate concerns surrounding political uncertainty. The bid-to-cover ratio, a measure of demand, was 2.60, higher than the previous auction's 2.127 and the 12-month average of 2.47. After the auction results were announced, the yield on the 40-year government bonds fell by 7 basis points to 3.31%. Earlier this month, Japanese Prime Minister Yoshihide Suga announced his plan to step down, leading to speculation in the market about his successor and the potential impact on policies. Additionally, the Japanese Ministry of Finance proposed a second cut in the issuance of longer-term bonds this year to calm the bond market volatility. "The results were strong in pushing the yield curve to flatten," said Miki Den, a senior interest rate strategist at SMBC Nikko Securities.