Superlong JGBs lifted by strong 40-year sale results

Japanese government bonds mostly rose, following upbeat results from a 40-year sale that brought superlong bond yields off their session highs, as well as speculation that Japan’s finance ministry might trim its issuance of longer maturities. The benchmark 10-year JGB yield was flat at 0.030 percent, after earlier rising to 0.045 percent, its highest since February. “The 40-year sale was better than expected,” said Tadashi Matsukawa, head of fixed income investment at PineBridge Investments in Tokyo. Data showed Japan’s core consumer prices marked their eighth straight month of annual declines in October, illustrating the sheer scale of the central bank’s struggle to beat deflation and stagnant growth with diminishing policy options.