Japanese bonds rally on hopes of less supply

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After the government took rare steps to canvas the initial dealers and other market participants for their opinion on the future of Japan’s long -term bonds on Tuesday, the hope that it could supply it could be supplied.

The Japanese Finance Ministry move was designed to recover the quiet market in JGB market which has been Rack In recent weeks, the cost of adoption of Orrows in the last week has increased on a higher record.

Yield of 30 years Japanese 0.19 percent of points dropped to 2.85 percent, while the yield of 10 years was reduced to 0.04 percent points to 1.46 percent. The yields are reversed in bond prices.

According to the two familiar with the situation, the question paper was sent to a wide primary brokers and sought comments about the current market situation.

It has been told to both people that it was structurally low in demand for super long-dated JGBs, it was created to ensure that the government’s decision to return to the issue made it equitable.

MUFG analysts point out that the MOF’s move is “a weakened auction of 20 years last week and tomorrow 40 years before auction” may reflect the extended anxiety over yields “.

The US government’s bonds also rallied on Tuesday, the 5 -year treasury yield reduced by 0.07 percent points to 4.96 percent.