TOKYO: Japan’s 20-year government bond yield fell sharply on Tuesday after a strong auction for the bonds with the same maturity lifted sentiment.
The 20-year JGB yield fell as much as 6 basis points (bps) to 3.71%, its lowest level since September 9, after the auction outcome was announced.
Yields move inversely to bond prices.
The auction received bids worth 5.84 times the amount sold, higher than a ratio of 4.01 times at the previous auction last month.
“The strong auction outcome suggests that many investors expect a rebound in the bond market, as they turned to risk off after the mass protest in France and the sell-off of CoreWeave stocks and bonds,” said Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management.
The 30-year yield fell 1.5 bps to 3.970%.
The benchmark 10-year JGB yield rose 1.5 bps to 2.920%‑Reuters