Japanese bond market sentiment temporarily eased, with the bid-to-cover ratio of the 10-year government bond issuance higher than the average level of the past year.

The results of the 10-year Japanese government bond auction were stronger than the average level of the past year, bringing short-term relief to market sentiment amidst rising global yields. The bid-to-cover ratio for the 2.6 trillion yen government bonds sold by Japan rose to 3.66, up from 2.54 at the previous month's auction. Following the release of the auction results, Japanese government bond futures rose by 0.20 to 139.22. Global confidence in long-term bonds is weak, with investors concerned about massive budget deficits that could worsen the debt burden of some of the world's largest economies. Additionally, the Bank of Japan's reduction in large-scale bond purchases has led to a sharp steepening of the country's bond yield curve, intensifying concerns about government borrowing.