By Reuters
TOKYO: Japan鈥檚 super-long government bonds rose on Wednesday, as investors bought back the bonds after a heavy selloff this week.
The 40-year JGB yield fell 8 basis points to 3.4%. The 30-year JGB yield fell 2.5 bps to 3.135%.
Yields move inversely to prices.
The 30-year bond yield hit a record high in the previous session amid concerns about the nation鈥檚 fiscal health ahead of a closely-monitored upper house election at the end of this week.
The market weighed the risk of the defeat of the Liberal Democratic Party and its coalition partner Komeito, as a potential defeat could empower opposition parties, which are seeking to cut or abolish the sales tax.
鈥淭he market has priced in the defeat of the LDP coalition and the expansion of Japan鈥檚 spending,鈥 said Takashi Fujiwara, chief fund manager at Resona Asset Management鈥檚 fixed income investment division.
鈥淪o from now until the end of the week, investors may start buying the bonds to cover short positions. The 30-year bond yield may not rise further