JGBS: 30Y Supply Absorbed With Solid Demand Metrics

The 30-year bond auction delivered solid results, with the low price aligning with dealer expectations at 96.55, according to the Bloomberg poll. The cover ratio increased slightly to 3.4557x from 3.4353x, while the auction tail shortened, signaling stronger demand.

• This performance marks a notable improvement over the weaker 10-year auction earlier this week, which struggled with softer demand metrics.
• As highlighted in our auction preview, today’s auction offered an outright yield at a cycle high, approximately 5bps higher than last month.  
• The stronger results may also reflect a rebound in sentiment toward long-dated global bonds, which has improved since mid-November.
• In early afternoon trading, the 30-year JGB remains steady, with minimal movement, indicating a stable market response to the auction.