Japanese government bonds rose on Friday, tracking the climb in U.S. Treasury bonds following bets of a Federal Reserve rate cut in September, but the market remained cautious about domestic super-long bond yields.
Japan’s 30-year JGB yield (JP30YTN=JBTC) fell as much as 3.5 basis points (bps) to 3.23%, retreating from a record high of 3.285% scaled earlier this week.
Yields move inversely to prices.
The auction for the 30-year bonds in the previous session was smooth, despite concerns over weakening demand for the super-long-dated debts as Japan’s political scenario remains uncertain.
However, the yield for lowest accepted price for the 30-year bond auction was at record high of 3.277%, indicating demand for a higher premium for the super-long bonds, strategists said.
On Monday, lawmakers of Japan’s ruling party will vote whether to hold an extraordinary leadership election that could oust embattled premier Shigeru Ishiba, which will…
