Demand for Japanese 30-year treasury bonds was stronger than the 12-month average on Thursday, and high yields supported buying activity. The bid multiplier for this auction was 3.79, lower than the previous auction of 3.86, but higher than the 12-month average of 3.52. The final margin, the difference between the average winning bid price and the lowest bid price, was 0.28, up from 0.21 last month. After the auction results were announced, Japanese treasury bond futures maintained their upward trend. Prime Minister Takaichi Sanae's policy proposal to expand fiscal spending has received more close attention from the market as various ministries and departments in Japan have submitted record budget applications for the next fiscal year. Investors therefore demand higher returns in order to be willing to hold debt for a longer period of time. Investors will also evaluate the long-term supply prospects of Japanese treasury bonds. Japan's Ministry of Finance plans to hold a meeting with Tier 1 traders later this month, which may become an important platform for discussing the state of the bond market.

Demand for Japanese 30-year treasury bonds was stronger than the 12-month average on Thursday, and high yields supported buying activity. The bid multiplier for this auction was 3.79, lower than the previous auction of 3.86, but higher than the 12-month average of 3.52. The final margin, the difference between the average winning bid price and the lowest bid price, was 0.28, up from 0.21 last month. After the auction results were announced, Japanese treasury bond futures maintained their upward trend. Prime Minister Takaichi Sanae's policy proposal to expand fiscal spending has received more close attention from the market as various ministries and departments in Japan have submitted record budget applications for the next fiscal year. Investors therefore demand higher returns in order to be willing to hold debt for a longer period of time. Investors will also evaluate the long-term supply prospects of Japanese treasury bonds. Japan's Ministry of Finance plans to hold a meeting with Tier 1 traders later this month, which may become an important platform for discussing the state of the bond market.