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[Japanese Government Bond Futures Trade in Narrow Range; Ultra-Long-Term Non-New Issuance Bonds Strengthen Supported by Draft Accounting Standards] ⑴ On Thursday, Japanese government bond futures fluctuated within a narrow range throughout the day, with the 20-year bond auction failing to provide a clear direction for the market. Futures opened at 132.31, down 17 basis points from the previous day, but subsequently rebounded supported by the resilience of spot bonds. The 10-year yield rose only 1 basis point to 2.145%. ⑵ The 20-year government bond auction was successfully completed, representing an additional issuance of the currently newly issued JL195. The auction results were mixed: the stop yield was 2.979%, 1.1 basis points higher than the previous close. The subscription multiple was 3.08 times, lower than last month's 3.19 times and the average of 3.54 times across six auctions. Some believe that the auction attracted robust demand despite yields below 3%, performing better than expected; however, others argue that the decline in the subscription multiple indicates weakening demand. ⑶ Ultra-long-term non-new issuance bonds performed particularly strongly. Non-newly issued bonds with maturities around 25 years continued to receive buying support, mainly boosted by the draft accounting standards released by the Japan Institute of Certified Public Accountants on Tuesday. The market believes that if the draft is finalized, the necessity for life insurance companies to write down bonds when their prices fall to half of their purchase price will decrease. As a result, the yield on non-newly issued bonds maturing in December 2051 fell by as much as 10 basis points during the day. (4) Traders pointed out that the sharp fluctuations in 30-year non-newly issued bonds were mainly due to insufficient liquidity and traders' unwillingness to hold positions. One trader stated that these bonds are highly volatile and lack effective hedging tools, resulting in low trading interest.