UK long-term borrowing costs on brink of 27-year high; gold price hits record – business live

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Tokyo has fought off the bond vigilantes today, at a price!

An auction of Japan’s 10-year government bonds today has seen the strongest demand since October 2023.

The yield on the benchmark 10-year bond fell 2.5 basis points to 1.595% after touching 1.625% Monday, close to the highest since 2008, and bond futures gained after the auction result. The bid-to-cover ratio jumped to 3.92 from 3.06 at last month’s sale, comfortably above the 12-month average.

“The results were strong,” said Shuichi Ohsaki, a senior portfolio manager at Meiji Yasuda Asset Management’s fixed income management department.

“Silver is making a move higher in response to expectations of lower U.S. rates, while a tight supply market is helping to maintain an upward bias.”