TSX runs higher on rate cut expectations
Investing.com -- Prices of Japan’s 30-year government bonds have increased following the weakest auction of these securities in over a year. This development has increased pressure on the Ministry of Finance to decrease the supply of super-long notes.
The bid-to-cover ratio, which measures demand by comparing the number of bids to the quantity of securities offered, dropped to 2.921. This is the lowest it has been since December 2023, and it’s a decrease from 3.074 at the previous sale in May.
The auction came on the heels of a disappointing 40-year bond sale last week. This event served as a measure for demand in super-long bonds, which saw their yields reach record highs in May after significant sell-offs.
Following the auction, the 30-year JGB yield briefly reduced its losses but then fell as much as 7 basis points to 2.875%. It was last down 6 basis points at 2.885%. Bond yields and prices move in opposite directions.
Yields across different tenors also decreased, with the 10-year JGB yield slipping 4 basis points to 1.46%. The five-year yield fell 3.5 basis points to 1.005%, and the 20-year JGB yield fell 7 basis points to 2.355%.
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