Japan's super-long bonds rise after news on issuance cut
Super-long bond yields hit record highs in recent sessions over concerns about the size of Prime Minister Sanae Takaichi's debt-funded stimulus.
TL;DR
- Super-long bond yields hit record highs due to concerns over debt-funded stimulus.
- Yields fell as Reuters reported a possible reduction in super-long bond issuance for the next fiscal year.
- The 30-year JGB yield dropped from a record high after the report.
- Weak demand at a two-year JGB auction led to a rise in its yield.
- BOJ Governor Kazuo Ueda indicated that underlying inflation is gradually accelerating towards the 2% target.
- Shorter-dated bond yields had previously risen due to expectations of further rate hikes after the BOJ's recent increase.
- The yen weakened previously as Governor Ueda gave no clear indication of the next rate hike, prompting JGB sales.
- The yen stabilized against the dollar on Thursday amid expectations of potential intervention.