[Japanese 40-Year Government Bond Auction Demand Hits Highest Since March 2025] Golden Finance reports that on July 22, Japan's 40-year government bond auction attracted the strongest demand since March 2025, driven by higher yields appealing to investors. The bid-to-cover ratio for Wednesday's auction was 2.82 times, surpassing the previous auction's 2.702 times and the 12-month average of 2.55 times. After the auction concluded, Japanese government bond prices remained largely unchanged. Recently, statements from Japanese government officials have emphasized the importance of the massive Government Pension Investment Fund increasing its investment in domestic financial assets, providing support for Japanese government bonds. The yield on 40-year government bonds is currently hovering around 3.895%, after reaching a historic high of 4.355% in May. However, some investors remain focused on Prime Minister Sanae Takaichi's expansionary fiscal policy agenda, expectations for the Bank of Japan's gradual tightening of interest rates, and the still significant interest rate differential. (Jin10)