Yield on 30-year JGB falls 3 bps to 2.915%

Yield on 30-year JGB falls 3 bps to 2.915%

The yield on Japan's 30-year government bond (JGB) has fallen by 3 basis points to 2.915%, according to data released on June 5, 2025. This decrease comes amidst ongoing market volatility and concerns about demand for super-long bonds.

The latest decline in the 30-year JGB yield follows a period of significant upward pressure, with yields reaching record highs in recent weeks. The 30-year JGB yield had previously soared to 3.14%, the highest level since October 2000, driven by worries about demand and fiscal position in Japan [1].

The Bank of Japan (BOJ) is currently attempting to unwind its decade-long policy of ultra-easy monetary stimulus. However, the recent yield spikes have prompted calls from bond market participants for the BOJ to reconsider its tapering strategy, particularly for super-long bonds. Some analysts have cited a lack of stability in the super-long sector, highlighting persistent supply-demand softness and concerns over potential sell-off spirals [1].

The BOJ faces a delicate balancing act as it seeks to raise interest rates while managing the bond market's liquidity. Deputy Governor Shinichi Uchida has indicated that policy tightening could resume if the economy recovers from expected hits from higher U.S. tariffs. Investors are now focusing on finding the equilibrium yield level consistent with the BOJ's policy rate, which currently stands at 0.5% [1].

The recent yield decline in the 30-year JGB suggests a temporary reprieve in the upward trend, but the market remains volatile and sensitive to fiscal policy changes and global economic developments. As the BOJ continues to navigate its monetary policy, investors will be closely monitoring the super-long bond sector for further signs of stability or distress.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3RS07U:0-japan-s-super-long-bond-yields-soar-to-records-as-market-frets-about-demand/