Japan's super-long bonds briefly change course to fall after weak auction

Japan's 20-year government bond auction saw weak demand, with the bid-to-cover ratio falling to 2.97 from 4.01 at the previous sale, the lowest since May 2025. The 20-year yield briefly spiked to 3.565 percent before settling down 3 basis points at 3.535 percent, reflecting investor concerns over a 370 trillion yen investment plan announced for fiscal 2040. The 30-year yield also reversed course, rising to 3.875 percent, as worries about expanded government spending weighed on long-dated bond demand.