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Japan's super-long bond yields rise ahead of auctions
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Japan's super-long bond yields rise ahead of auctions
Nov 3, 2025 10:24 PM

TOKYO, Nov 4 (Reuters) - Japan's super-long-dated bond

yields jumped on Tuesday, as investors sold the debts to steepen

the curve ahead of a series of auctions of those bonds later

this month.

The 30-year JGB yield rose 5 basis points to

3.09%, and was last at 3.08%. The 40-year JGB yield

rose 4.5 bps to 3.4%.

The spread in yields between the 10-year and 30-year bonds

narrowed the most in five months last week, reversing the trend

of curve steepening, which was driven by weak demand for those

bonds.

The spread rose to a record 170 bps in early September, and

fell to 138 bps on October 30, its lowest since the end of May.

"Investors sold the longer-dated bonds to get better prices

for those bonds at the auctions," said Takashi Fujiwara, chief

fund manager at Resona Asset Management's fixed income

investment division.

The finance ministry auctions 20-year, 30-year, and 40-year

bonds later this month.

Demand for the super-long-dated bonds improved after the

ministry reduced the amount of sales at the auctions earlier

this year to contain rising yields, Fujiwara said.

A sharp rally in Japanese stocks also helped demand for

those bonds as pension funds needed to rebalance their

portfolios, he added.

The 20-year JGB yield rose 3.5 bps to 2.615%.

Yields on shorter-dated bonds also rose, with the 10-year

JGB yield rising 2 bps to 1.675%

The five-year yield rose 2 bps to 1.240%.

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