Demand for the 20-year Japanese government bond tender was lower than the 12-month average level.

Demand for Japan's 20-year government bond auction was lower than the average level of the past 12 months, highlighting the possibility of continued increases in sovereign debt as the country prepares for elections. The average bid-to-cover ratio was 3.15, compared to the 12-month average of 3.29. The last auction had a bid-to-cover ratio of 3.11. Another sign of subdued investor demand is the difference between the average price and the lowest winning price, which was 0.18 compared to 0.28 at the last auction. The Japanese Ministry of Finance has adjusted the bond issuance size, reducing the amount of long-term bonds issued, which shows some signs of dampening volatility in the bond market. However, investors are still worried about the impact of rising debt levels on the market. Ahead of the upcoming upper house elections later this month, politicians are trying to attract voters by increasing government spending or cutting taxes, with rising debt levels becoming a focal point.