Demand for Japan’s 40-year government bond auction matches the 12-month average

Golden Ten Data reported on March 24 that demand for Japan's 40-year government bond auction was in line with the 12-month average. Despite ongoing tensions in the Middle East, higher yields continued to attract investors. At Tuesday’s auction, the bid-to-cover ratio was 2.54, compared to 2.76 at the previous auction, and the 12-month average is 2.54. After the auction ended, gains in Japanese bonds were maintained. Global bond yields have generally risen, as a sharp increase in energy costs prompted traders to prepare for central bank rate hikes. Japan’s 40-year yield hovered around 3.75%, close to the record high set in January this year.