Japan Bond Sale Sees Firm Demand as Traders Weigh Iran Situation

Japan’s latest debt auction passed smoothly as signs of a potential de-escalation in Middle East tensions brought some respite to the market.

The country’s bonds held onto gains after Tuesday’s sale, which had a bid-to-cover ratio of 2.54, in line with the 12-month average. It was the last sale of that tenor before the new financial year starts, when the finance ministry is planning to reduce sales of super-long debt.