Firm Demand at Japan’s Latest Bond Sale Adds to Global Relief

Japan’s first sale of government bonds since the ruling political coalition crumbled drew firm demand as higher yields attracted investors, bringing more comfort to global debt markets.

A key gauge of demand at the 20-year auction Wednesday was above the 12-month average for that tenor. The sale follows two smooth offerings last week, pointing to an easing funding environment in Japan even amid political turmoil. Long-dated bonds held gains after the result, with 20-year yields dropping 3 basis points to 2.685% and 40-year yields falling 6.5 basis points to 3.435%.