Japan’s 10-year government bond yield slipped to around 3.08% on Wednesday, retreating from 30-year highs as strong demand for government debt at this week’s auctions eased market concerns. Auctions for Japan’s 2- and 40-year government bonds saw better-than-expected demand, with elevated yields encouraging investors to buy. The latest 40-year bond sale attracted its strongest demand since 2020, while the 2-year auction also recorded firmer demand than its 12-month average. The solid demand comes despite expectations that the Bank of Japan will continue raising interest rates to contain persistent inflation. A former BOJ official said this week that the central bank could raise its benchmark rate for a second consecutive meeting in October. Japanese yields also eased as oil prices fell sharply on signs of improving energy flows from the Middle East, reducing inflationary risks.