EM ASIA CREDIT: MNI EM Credit Market Update - Asia

The Japanese Ministry Of Finance (MoF) sells ¥604.8bn 30-Year JGBs:

• Average Yield: 2.941% (prev. 2.414%)
• Average Price: 91.40 (prev. 99.75)
• High Yield: 2.961% (prev. 2.457%)
• Low price: 91.10 (prev. 99.00)
• % Allotted At High Yield: 52.8571% (prev. 33.8235%)
• Bid/Cover: 3.0739x (prev. 2.9582x)

*JAPAN 30Y GOVT BOND AUCTION MAY HAVE 91.10 LOWEST PRICE:POLL – BLOOMBERG

The Japanese Ministry of Finance (MoF) will today sell Y800bn of 30-Year JGBs. The MoF last sold 30-year debt on 8 April 2025.

• This month’s 30-year JGB auction features an outright yield approximately 50–55 basis points higher than last month’s issuance. Notably, the current yield is hovering just below its cycle high of 3.0%.
• The 10s30s yield curve is now 5–10 basis points steeper than at the time of the previous auction, though still around 10 basis points below its recent peak.
• On a relative value basis, the 30-year bond remains largely unchanged versus last month when viewed through the 20-/30-/40-year butterfly spread.
• Today's supply comes amid weakening sentiment toward longer-dated global bonds, weighed down by positive trade deal developments, consistently strong U.S. economic data, and a further pushback in expectations for Fed rate cuts.
• Against this backdrop, today’s 30-year auction will serve as a key gauge of investor appetite in the face of heightened uncertainty.
• Results are due at 0435 BST / 1235 JT.