Japan’s 30-year government bond auction drew its strongest demand in six years on Wednesday, signalling solid investor appetite even as long-term yields hover near multi-decade highs. The Ministry of Finance reported a bid-to-cover ratio of 4.04, sharply higher than 3.12 at the previous auction in November and the highest since 2019.
The auction also produced a much smaller tail of 0.09 yen, compared with 0.27 yen last month, indicating investors were willing to accept yields closer to the market clearing level and suggesting smoother price discovery.
The robust outcome points to renewed demand from both domestic institutions and overseas buyers, who see value at the long end of Japan’s yield curve despite the Bank of Japan’s ongoing policy-normalisation debate
