Archive · 5 Jun 2025

Weak Demand at Japan 30-Year Bond Auction Fuels Concerns

Weak Demand at Japan 30-Year Bond Auction Fuels Concerns

Imagine the Japanese government is selling long-term bonds, like IOUs.

Lately, fewer people want to buy them, especially bonds that last for 30 years.

The last auction had the weakest demand in a year.

This means the government might have to rethink how many bonds they sell.

The yield on these bonds has fallen but is still relatively high.

Investors are worried about the lack of interest in long-term bonds.

This is partly because Japan's population is aging, and some investors don't need to buy as many long-term bonds anymore.

The central bank is also thinking about buying fewer bonds in the future.

Sources