What’s going on here?
Japanese government bond (JGB) yields were mixed on Thursday, influenced by higher US Treasury yields and robust demand at a 30-year JGB auction.
What does this mean?
Japanese bond yields took a curious turn this week as the market responded to US movements and a solid 30-year JGB auction. Minutes from the Bank of Japan’s (BoJ) July meeting revealed some policymakers are considering interest rate hikes, but BoJ Deputy Governor downplayed any immediate moves. Over in the US, Treasury yields rose due to soft demand for 10-year notes and companies issuing more debt amidst improved risk appetite. Notably, the 30-year JGB auction saw yields drop by 7 basis points to 2.115%, following a one-month high of 2.24%, and its bid-to-cover ratio climbed to 3.47 from 2.97 in July. Amid all this, 10-year JGB yields fell 2 basis points to 0.855%, and benchmark futures rose 0.16 yen to 145.12 yen.
Why should I care?
For markets:…
