Japan sells JPY 525bln 30-yr JGBs; b/c 3.64x (prev. 3.14x), and average yield 3.615% (prev. 3.447%)

• Lowest accepted price 96.80 vs prev. 99.15
• Average accepted price 96.91 vs prev. 99.30
• Tail in price 0.11 vs prev. 0.15

The auction of JPY 525 billion in 30-year JGBs showed strong demand with a bid-to-cover ratio improvement to 3.64x, indicating greater investor appetite compared to previous auctions. However, the significant drop in average yield and lowest accepted price suggests that investors are seeking higher returns, potentially reflecting concerns about inflation or long-term growth prospects. This may also indicate a shift in rate expectations or risk sentiment in the fixed income space.