The performance of 30 years of state bonder her Japan He climbed to the highest level of almost 25 years, as optimism from US -China trade talks encouraged sales of assets.
Performance of 30 years of debt increased by 5 basis points at 2,955%the highest level since November 2000. There has been a constant concern about demand for Japanese bonds, with yields already ranging at the highest level since 2004 before the negotiations.
The bonds followed a move to increase the risk of markets on Monday (12.5.2025), as both the US and China reported “significant progress” in trade talks, without giving specific measures. The US State also fell throughout the curve as the negotiations reduced the demand for assets.
The short -term jgbs They were over -rewarding due to the retreat of expectations to raise interest rates by the Bank of Japan, while the 30 -year performance increased amid global volatility and fiscal concerns.
The Japan’s supermarked state bonds They have recently attracted record inputs from abroad, but most major life insurance companies reduce their placements in the country’s bonds.
There has been “increased volatility and concerns about fiscal expansion through defense and costs of stimulating the economy, as well as the existing fragility of the supply-demand structure”, wrote Shinichiro Kadota and Ayao Ehara, strategic analysts of Barclays Ltd. Week.
“The industry of over-term securities has increased abruptly on Bear-Steep since the imposition of Trump’s duties in April,” Barclays said. The sale of 10 -year Japanese bonds saw last week the weakest demand since 2021. There is also a cautiousness in view of the 30 -year auction tomorrow Tuesday (13.5.2025).