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The demand for Japan's 10-year government bond auction is stronger than the 12-month average.
Jin10 data reported on July 1st that the demand for Japan's 10-year government bond auction was stronger than the 12-month average, as expectations for Central Bank interest rate hikes weakened, alleviating the upward pressure on long-term government bond yields. The bid-to-cover ratio for this auction was 3.51, higher than last month's auction of 3.66 and the 12-month average of 3.14. Another strong indicator of demand is the gap between the average price and the minimum acceptable price, which was 0.03, compared to 0.01 in the previous auction. Since the end of May, Japan's sovereign bond auctions have attracted significant attention, as a previous auction of 20-year government bonds received poor feedback, causing ultra-long bond yields to rise to record highs. The surge in Japanese government bond yields has impacted the global bond market, with investors remaining vigilant about the continually expanding government deficit.