Japan successfully issued 30-year government bonds, avoiding risks in the bond market.

According to Gate News bot, Bloomberg reports that the demand for Japan’s 30-year government bond auction indicates that policymakers have had some success in calming fluctuations in the debt market.

The bidding multiple reached 3.58, the highest level since February, significantly higher than the 2.92 during the auction in June. However, the lowest bidding price fell short of expectations, indicating that some participants in the market remain cautious. Yields on various bonds continue to rise, with the yield on 30-year Treasury bonds increasing by 2 basis points to 2.904%, while Treasury futures recorded losses.

Compared to the market turmoil caused by Japan selling long-term bonds in May and the surge in bond yields in the UK and the US on Wednesday, the market reaction has been limited. Since the Ministry of Finance announced plans to cut the issuance of long-term bonds, the upward pressure on Japanese bond yields has eased.

Martin Wheatley, head of financial market strategy at Westpac, commented on the auction results, saying: “Although it’s not outstanding, it’s good enough.” “Since this news has been fully communicated, it is likely a buy on rumor, sell on fact event, but looking ahead, as the market gradually adjusts to reduced supply, this should be constructive.”