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2026-05-27 12:10:04
[High Demand for Japanese 40-Year Government Bonds Exceeds Average; High Yields Attract Buyers] 1. Despite ongoing Middle East conflict fueling inflation concerns, the latest auction of Japanese 40-year government bonds recorded above-average demand. The higher coupon rate was a major factor attracting investors. 2. The bid-to-cover ratio for the 40-year government bonds auctioned by the Ministry of Finance on Wednesday reached 2.70, higher than the previous auction's 2.54 and exceeding the 12-month average of 2.47. 3. The winning yield for this auction was 3.84%, up from 3.6% in the previous auction. Currently, the latest yield on Japanese 40-year government bonds in the secondary market is 4.09%, lower than the record high of 4.355% reached earlier this month. 4. Meanwhile, Japanese Prime Minister Sanae Takaichi stated that the government will provide funds for supplementary budgets without increasing the annual issuance of government bonds, easing market concerns about supply pressures. 5. Japanese Finance Minister Satsuki Katayama also announced that approximately $3.2 billion from the current fiscal year's reserve fund will be used to subsidize public utility spending in order to further stabilize market sentiment.
