Demand for 20-year Japanese government bonds at auction stronger than 12-month average level.

On Tuesday, demand for Japan's 20-year government bond auction was stronger than the 12-month average level, with high yields supporting buying interest. The bid-to-cover ratio for this issuance was 4.52, higher than the previous 2.97 and the 12-month average of 3.54. Another indicator of strong investor interest is the difference between the average winning bid price and the lowest winning bid price, which was 0.00 this time, compared to 0.24 last month, matching the record low set in 2010. Following the auction of the 20-year government bond, Japanese government bond futures saw an increase. Japanese Finance Minister Kohei Otsuka last Friday called for the country's Government Pension Investment Fund to increase its investments in domestic assets, leading to a slight decline in Japanese government bond yields. However, a subsequent report from the media tempered these expectations, stating that the government has no plans to overhaul the GPIF's asset allocation.