30y JGB auction preview: Cheap from a supply-demand perspective and recent fiscal concerns partly priced in, but additional yield rise possible in near term; expect weakish-to-benign results

研报英文原文证据摘录

30y JGB auction preview: Cheap from a supply-demand perspective and recent fiscal concerns partly priced in, but additional yield rise possible in near term; expect weakish-to-benign results

FICC Research

Interest Rates

6 July 2026

Japan Rates Strategy

30y JGB auction preview

Valuations cheap in terms of interest rate risk supply-

demand, and cumulative positioning indicator based on BB

data following pattern typically associated with benign Ayao Ehara + 81 3 4530 1379

auction results. However, given potential for additional fiscal ayao.ehara@barclays.com

concerns to weigh on demand, we expect weakish-to-benign BSJL, Japan

results. Shinichiro+81 3 4530 1374Kadota

shinichiro.kadota2@barclays.com

BSJL, Japan

30y JGB auction: Cheap from a supply-demand

perspective and recent fiscal concerns partly priced

in, but additional yield rise possible in near term;

expect weakish-to-benign results

An auction for 30y JGB (July issue) will be held tomorrow (7 July). It will be a new issue of

JX91 (June 2056), with a scheduled issuance size of JPY0.6trn at par plus any additional

allocations through the Non-Price Competitive Auction II.

Yield, curve, ASW: Figure 1 is a heat map comparing the current market environment with the

market environment (and auction results) at the time of past auctions. For this auction, the

absolute yield level has risen sharply again with the proactive fiscal stance in the Basic Policy on

Economic and Fiscal Management and Reform (“Basic Policy”) and growth strategy. As

discussed below, from the perspective of fair value based on interest rate risk supply-demand

conditions, the bond appears around 7-10bp cheap, making it attractive in this respect (Figure

9). On the other hand, regarding the Basic Policy, which Reuters reported on 30 June is expected