The US sold $13 billion in 30-year bonds in a re-opening, the lowest auction yield since December.
There was lots of speculation about a possible bid from Japan. After falling as low as 2.84% last week, yields have been rising on speculation the bid might not appear.
There is a touch of USD/JPY strength on the results but the market did a good job of sniffing this one out.
The thinking is that there will be a rush out of JPY assets following the BOJ moves but it takes some time and no one quite knows where it’s headed yet (although there is buzz about it heading into French debt).
