Overview
- The 10-year JGB yield rose to about 2.12% after the sale, reversing an earlier dip and holding near its highest level since 1999.
- The 10-year auction produced a bid-to-cover ratio around 3.30, indicating moderate demand that did not stem further selling.
- Longer-dated yields advanced, with the 20-year near 3.06%, the 30-year around 3.475%, and the 40-year about 3.69% earlier in the session.
- Forward OIS pricing suggests a BOJ terminal rate near 1.7% after last month’s policy rate increase to 0.75%.
- Rising yields and pressure on the yen are focusing investors on fiscal–monetary tensions and the risk the bond rout poses to the economy.