Japan’s 40-year government bonds rallied after investors piled into an auction of that maturity on Thursday, easing concerns about super-long debt even as domestic political uncertainties swirled ahead of Japan’s ruling party leadership race.
The bid-to-cover ratio, a measure of demand, came in at 2.60 compared with 2.127 at the previous auction and a 12-month average of 2.47. The 40-year bond yield fell 7 basis points to 3.31% after the results were announced.