Investors displayed their highest level of interest in six years for a batch of ultra-long government securities sold by Tokyo on Sept. 29. The Ministry of Finance offered ¥300 billion of 40 year bonds in an auction where the highest yield stood at 4.1250% and 42.4153% of submitted bids were accepted. Relatively high yields attracted the increased appetite from market participants.

Finance Minister Katayama stated Japan will maintain a close dialogue with bond markets to pursue suitable debt management policy. Leading up to the auction results, the 40 year JGB yield rose 0.5 basis points to 4.230%.