Japan 30-Year Bond Sale Demand Calms Nerves After Market Jolt

Japan’s 30-year sovereign bond auction demand was firm enough to bring some calm to global markets following the surprise victory of pro-stimulus conservative Sanae Takaichi in the ruling party leadership race.

The sale’s bid-to-cover ratio rose from the last auction and came in slightly higher than the 12-month average. Government bond futures pared losses immediately after the result, while the 30-year bond yield dropped back to trade 0.5 basis points higher after touching a record high.