Bonds declined and expanded, 10-year bid tails rapidly expanded and sluggish - long-term interest rates rose over 19 bps

Updated 2024/8/6 13:16 JST (some excerpts)
The decline in bond prices widened on the afternoon of the 6th. Long-term interest rates rose by 19.5 basis points (bp) at one point. While the market price falls in response to the reaction the day before and a sudden rebound in Japanese stocks, sales pressure is intensifying in response to the sluggish results of 10-year government bond bidding.
　　As for the bid results for 10-year government bonds, the lowest bid price was 101 yen 07 yen, which was significantly lower than the market forecast of 101 yen 66 yen, and the tail (difference between the lowest and average successful bid price), which shows strong performance when small, expanded drastically from 50 yen to 2 yen last time, and became the size since 2003. The bid ratio, which reflects the strength and weakness of investor demand, was 2.98 times lower than the previous time, 3.23 times, and has reached a low level since January.