Interest Rates: Government bond futures fell, with long-term interest rates at 0.96%. Due to strong bidding, ultra-long-term bonds saw a decline in interest rates.

October 17, 2024, 3:16 PM GMT+9 (excerpt)
[Tokyo, 17th, Reuters] - <15:09> Government bond futures fell, with long-term interest rates at 0.96%. Due to strong bidding, ultra-long-term bonds saw a decline in interest rates.
The center month of government bond futures, the December contract, closed trading at 143.88 yen, down 13 sen from the previous trading day. The yield on newly issued 10-year government bonds (long-term interest rates) rose by 1.0 basis points to 0.960%. In addition to the rise in US interest rates in after-hours trading, the upward trend in medium-term bond yields in the cash market spread, making government bond futures dominated by selling. On the other hand, the results of the liquidity supply auction were perceived as strong, and ultra-long-term bond yields declined.
Government bond futures were bought in the morning. It started with a continuation of the previous day's trend of declining US interest rates. However, it later sank into negative territory. In the cash market, there was pressure for interest rate hikes mainly in the medium-term zone, and this trend had a ripple effect on government bond futures. The dollar/yen remained around 149 yen at the moment, and the additional interest rate hikes by the Bank of Japan were also considered.
The results of the liquidity supply auction announced by the Ministry of Finance at 12:35 pm (remaining period over 15.5 years, less than 39 years) showed a maximum yield spread of -0.017% and an average yield spread of -0.017%. The bidding ratio increased to 3.20 times from the previous time (3.09 times).