Japan’s 10-year bond sale draws investor demand on high yields

Japan’s 10-year government bond auction went off smoothly, attracting demand from investors drawn to high yields.

The bid-to-cover ratio was 3.30, compared with 3.59 at the previous sale and a 12-month average of 3.24. Japan’s bond futures pared gains after the sale.

Japanese government bond yields have recently risen to around multi-decade highs as investors mull the Bank of Japan’s rate-hike path as well as Prime Minister Sanae Takaichi’s spending plans. The 10-year government bond yield hit its highest level since 1999 this week.