30y JGB Auction Preview

This report previews the 30y JGB auction, weighing fiscal headwinds against attractive yields and stabilized interest rate expectations. Analysts see limited near-term room for super-long yield spikes, though fiscal policy remains a key uncertainty.

Key Takeaways

• 1.The 30y JGB auction faces volatility from fiscal expansion concerns, but medium-term holding is viable given the BOJ policy terminal rate is largely priced in.

Table of Contents

• Positives and negatives ahead of the 30y auction
• POTENTIAL POSITIVES
• POTENTIAL NEGATIVES
• Auction strategy
• 30Y ASSET SWAPS AND/OR OUTRIGHT LONGS WITH A MEDIUM-TERM HORIZON
• Key charts