Core Viewpoint - The recent 30-year Japanese government bond auction is seen as a test for policymakers to stabilize the bond market after significant volatility, with long-term bond yields reaching historical highs in May [1] Group 1: Market Reactions and Trends - Japanese bond yields have decreased from their peak due to the Ministry of Finance's strategy to reduce the issuance of long-term bonds and the Bank of Japan slowing down its bond purchase reductions [1] - There is a cautious market sentiment, particularly regarding the 30-year bonds, as global scrutiny on long-term bonds increases amid rising government deficits [1][3] - The demand for Japanese long-term bonds is weakening, reflecting a decrease in purchases by traditional buyers like life insurance companies [1] Group 2: Auction Insights and Expectations - The upcoming auction results will be closely monitored, particularly the bid-to-cover ratio, which indicates investor demand; the last auction had a ratio of 2.92, below the average of 3.33 over the past year [2] - The Ministry of Finance plans to cut the issuance of 20-year, 30-year, and 40-year bonds by 3.2 trillion yen (approximately 22 billion USD) by the end of March 2026 [6] Group 3: Political and Economic Context - The uncertainty surrounding the upcoming national elections in Japan may suppress demand for the bond auction, as potential changes in fiscal policy could arise depending on election outcomes [7] - The Prime Minister has prioritized salary increases and achieving a 1 trillion yen economic target as key campaign promises, which may influence market dynamics [7]
超长期债券市场动荡能否平息?市场聚焦30年期日债拍卖
智通财经网·2025-07-03 03:00