Japanese Yields Slip on Strong Bond Auctions

2026-01-30 05:21 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield edged down to around 2.24% on Friday after strong demand at recent auctions of super long- and short-term bonds helped ease concerns about investor appetite for local debt amid a deteriorating fiscal outlook.

The sale of 40-year bonds on Wednesday attracted the highest demand since March last year, while a 2-year bond auction also saw demand exceed its 12-month average, as elevated yields drew in investors.

The latest auctions signaled stabilizing market sentiment following a historic bond selloff earlier this month, which was triggered by Prime Minister Sanae Takaichi’s proposal to suspend the sales tax on food for two years.

Investors also continued to assess the political outlook ahead of the Feb. 8 snap election for the lower house.

Meanwhile, minutes from the Bank of Japan’s December policy meeting showed that board members favored continuing rate hikes, provided that economic activity and price trends evolve in line with the bank’s forecasts.



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