Japan’s 40-year bond yield is on the move again. The situation that drew attention last week isn’t improving.





The lackluster Japanese 20-year Bond auction last week had a ratio of 2.5, meaning they got 2.5x more bids than what they asked for and accepted: https://www.mof.go.jp/english/policy/jgbs/auction/calendar/eresul/eresul20250520.htm

Because of the timezone, Wednesday’s 40-year Bond auction just happened, and the ratio is coming in around 2.2. They were hoping to get closer to the average ratio of 3. Also, for the first time in forever, Japan had to directly accept a yield higher than 3% on its debt: https://www.mof.go.jp/english/policy/jgbs/auction/calendar/eresul/eresul20250528.htm