JGB Traders Breathe Sigh of Relief After Strong 30-Year Auction
- Record sale of 30-year bonds draws highest demand in a year
- Market faces two more auctions in the super-long zone in July
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Traders in Japan’s government bond market are relieved after strong appetite at a record 30-year auction signaled that investors are willing to buy the nation’s super-long debt.
Tuesday’s sale drew a bid-to-cover ratio of 3.92 times, the highest since July last year. Markets had been concerned about investor demand ahead of the sale, the first for the 30-year tenor since the government’s latest increase in debt issuance took effect this month. Japan’s bond futures edged higher after the result.