Japan's 20-year bond yield falls sharply after strong auction

Yields on Japan's 20-year government bonds dropped steeply on Tuesday, according to Business Recorder citing Reuters, after a well-received auction of debt with the same maturity. The yield slid by as much as 6 basis points to 3.71%, its lowest since September 9, once the auction result was published. Because yields move opposite to bond prices, the decline means bond prices rose.

Bids for the auction totalled 5.84 times the amount sold, up from 4.01 times at the previous sale last month. Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management, linked the demand to a move away from risk after mass demonstrations in France and a slump in CoreWeave equities and debt.

Elsewhere on the curve, the 30-year yield edged down 1.5 basis points to 3.970%. The benchmark 10-year yield, however, rose 1.5 basis points to 2.920%.