Japanese government bond yields fall ahead of 30-year auction
TLT•Japanese government bond yields fell on Thursday ahead of a 600 billion yen 30-year debt auction. The 10-year yield declined 2.5 basis points to 3.080%, and the 30-year yield fell 4 basis points to 4.170%.
1. Yields retreat before auction
The 30-year yield retreated from a record high of 4.25% touched Monday as investors remained cautious about the Bank of Japan’s policy-tightening path. The finance ministry was set to auction about 600 billion yen ($3.80 billion) of 30-year notes later Thursday.
2. Policy and market context
The two-year yield fell 1.5 basis points to 1.93%, the five-year yield declined 2 basis points to 2.390%, and the 20-year yield slid 3.5 basis points to 3.945%. Barclays analysts said they expected the auction to be uneventful, while market expectations for another BOJ rate hike shifted toward December.
