JGB yields rise after 30-year auction draws weak demand
TLT•Japanese government bond yields rose after a 30-year auction drew weak demand. The 30-year yield climbed 2.5 basis points to 3.865%, while the 10-year yield rose 2 basis points to 2.685%.
1. Yields climb after auction
Japanese government bond yields rose on Tuesday after a 30-year bond auction drew weak demand, following safe-haven buying in recent sessions that had pushed yields to multi-month lows. The 30-year yield increased 2.5 basis points to 3.865%, and the 10-year yield rose 2 basis points to 2.685%.
2. Investor appetite weakens
Miki Den, senior Japan rate strategist at SMBC Nikko Securities, said yields were low for pension funds and life insurers, while rapid swings in recent sessions hurt hedge fund appetite. The two-year yield rose 0.5 basis point to 1.775%, the five-year yield gained 1.5 basis points to 2.105%, and the 20-year yield climbed 4 basis points to 3.59%. Recent selloffs and uncertainty surrounding AI-related stocks have influenced bond markets globally, the article said.
