Original title: Japanese 10-Year Bonds Gain After Strongest Auction Since 2023
Japan’s 10-year government bond auction saw its strongest demand since October 2023, bringing some relief as investors were attracted to elevated yield levels. The yield on the benchmark 10-year bond fell 2.5 basis points to 1.595% after touching 1.625% Monday, close to the highest since 2008, and bond futures gained after the auction result. The bid-to-cover ratio jumped to 3.92 from 3.06 at last month’s sale, comfortably above the 12-month average.