Strong demand for Japanese government bonds helped to steady Asian markets on Tuesday, a day after hawkish comments from the central bank governor sparked a global sell-off.
The yen steadied and equity markets were flat, with investors reassured by demand at an auction of Japanese government bonds. The benchmark Nikkei 225 and the broader Topix both closed up 0.1 per cent, while the yen weakened 0.1 per cent against the dollar.
The auction of 10-year Japanese bonds attracted relatively solid demand, including from pension funds, helped by the yield of 1.88 per cent on the benchmark note — a 17-year high — immediately prior to the auction.