According to Jinshi data reports, the demand for Japan's 10-year government bond auction was stronger than the 12-month average level, as expectations for central bank interest rate hikes weakened, alleviating upward pressure on long-term government bond yields. The bid-to-cover ratio for this auction was 3.51, higher than last month's 3.66 and the 12-month average of 3.14.
Another sign of strong demand is that the average price and the minimum accepted price difference is 0.03, compared to 0.01 in the previous auction. Since the end of May, Japan's sovereign bond auctions have attracted much attention, as the previous 20-year government bond auction received a poor response, causing ultra-long bond yields to rise to record highs. The surge in Japanese government bond yields is impacting the global bond market, and investors remain vigilant about the expanding government deficit.