Japan 20-Year Bond Sale Meets Demand, Allays Steepening Concerns
- Auctions this month from 10-year to 30-year have been solid
- This comes even as issuance ramps up to pay for stimulus
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Japan’s auction of 20-year government bonds confirmed that there is enough demand when yields rise to absorb increasing supply, damping concern about further curve steepening.
The government sold about 1.2 trillion yen ($11.2 billion) of debt on Tuesday, with the lowest bid price higher than forecast and the bid-to-cover ratio about the same as in June, when the offer amount was 300 billion yen less.