Relief as Japan’s 20-year bond sale draws strong demand despite Gulf crisis
Japan’s 20-year government bond auction on Tuesday drew solid demand as higher yields attracted buyers, easing concerns that rising oil prices and inflation risks would damp appetite.The bid-to-cover ratio rose to 3.25 from 3.09 last month and was roughly in line with the 12-month average. The tail — the gap between the average and lowest accepted prices — narrowed sharply to 0.06 from 0.14, signaling stronger bidding.The 20-year yield extended its drop to 1 basis point following the results, to 3.135%. The rate had climbed in recent weeks amid a global bond sell-off, though it's still well below the 3.46% peak reached in January.
