Sumitomo Mitsui Financial Group, Inc.8316
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Sumitomo Mitsui Financial Group, Inc.40-year JGB auction draws bid-to-cover of 3.1, highest since July 2020
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The 40-year interest-bearing Japanese government bond auction held by the Ministry of Finance on the 29th drew a bid-to-cover ratio of 3.1, a gauge of investor demand, exceeding the 12-month average of 2.67 and marking the highest level since July 2020. It also topped the previous auction's 2.82, with demand gathering on the appeal of high yields and the issue being absorbed smoothly. The highest accepted yield was 4.125%, against a market forecast of 4.14%. The auction took place as a global bond selloff continued amid inflation driven by high crude oil prices and concerns over government finances in various countries, with the US Treasury market on the 28th seeing the 10-year yield hit its highest since 2007 and the 30-year yield its highest since 2004. Miki Tami, senior interest rate strategist at SMBC Nikko Securities, had said in an advance report that the small issuance size and high yield levels pointed to a smooth or slightly strong result.