Japan’s 30-Year JGB Yield Rises to 3.09% as Curve Steepens Ahead of Auctions

Japan’s super-long-dated government bond yields rose on Tuesday as investors sold bonds to steepen the curve ahead of scheduled auctions later this month.

Key Yield Movements

• 30-Year JGB Yield: Up 5 bps to 3.09%, last at 3.08%
• 40-Year JGB Yield: Up 4.5 bps to 3.4%
• 20-Year JGB Yield: Up 3.5 bps to 2.615%
• 10-Year JGB Yield: Up 2 bps to 1.675%
• 5-Year JGB Yield: Up 2 bps to 1.240%

The rise in yields reflects investor positioning ahead of supply from upcoming auctions.

Yield Curve Dynamics

The spread between 10-year and 30-year bonds narrowed to 138 bps on October 30, its lowest since May, reversing the steepening trend seen earlier this year. The spread had reached a record 170 bps in early September.

Auction Schedule and Demand Factors

Japan’s finance ministry will auction 20-year, 30-year, and 40-year bonds later this month. Demand for super-long bonds improved after the ministry reduced auction sizes earlier this year to contain rising yields. A rally in Japanese equities also boosted demand as pension funds rebalanced portfolios.

Read More: India-Japan Fund Invests ₹500 Crore in Eka Mobility.

Conclusion

Japan’s long-term bond yields climbed ahead of upcoming auctions, with the 30-year JGB at 3.09% and the 40-year at 3.4%. While spreads have narrowed, investor positioning and auction outcomes will determine the next phase of yield curve movements.

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