Markets remain cautious on Japan's longer bonds — Bloomberg

Demand for Japan's 20-year bonds fell below the average level over the past year, according to Bloomberg. This indicates investor caution, despite the government adjusting its borrowing plans to reduce yields, the news agency adds.

The bid-to-cover ratio at the latest auction held by the Ministry of Finance stood at 3.11. While this was an improvement on the last two auctions, some market participants had expected a higher figure. The price of bonds fell, while yields on 20- and 30-year securities climbed by 2 basis points.

According to Bloomberg, the sale occurred amid the Japanese government's plans to reduce the issuance of longer-maturity bonds in an attempt to curb yields. Earlier, the authorities approved cuts to sales of 20-, 30- and 40-year debt securities by 3.2 trillion yen ($22 billion) until the end of March 2026. The country also intends to increase issuance of short-term bonds.

Analysts surveyed by Bloomberg say that yields on long-term securities around the world continue to rise amid concerns about fiscal deficits and tensions between Israel and Iran.