Japan’s 20-Year Bond Sale Draws Strong Demand as Yields Rise

Japan’s 20-year government bond auction on Tuesday drew solid demand as higher yields attracted buyers, easing concerns that rising oil prices and inflation risks would damp appetite.

The bid-to-cover ratio rose to 3.25 from 3.09 last month and was roughly in line with the 12-month average. The tail, or the gap between the average and lowest accepted prices, narrowed sharply to 0.06 from 0.14, signaling stronger bidding.