The auction went smoothly. Government notes have been sold excessively recently and yields have probably factored in the impact of a policy shift.
Bonds sold off too much. Yields, especially on five- and 10-year bonds, came to a level attractive enough to lure some buyers.
Increasing pressure from the Finance Ministry helped bonds to gain. Bonds had a gradual decline over the past weeks and yields came to a level where they look attractive.
Yesterday's auction showed strong demand for debt and people were looking for a reason to buy.
It is too early to worry about inflation in Japan. There is a strong demand for 20-year bonds and it is good to consider buying them.
A gain in lending may be signaling that people are rushing to borrow before the central bank shifts policy. That's bond negative.
Increasing pressure from the Finance Ministry and the auction result for 30-year debt fueled the market recovery. Yields were approaching an attractive level to buy for investors.