(Bloomberg) -- Japanese government bonds rose after an auction of 30-year debt wasn’t as bad as many investors had feared.

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While immediate market reaction indicated relief — yields edged lower after the sale — the bid-to-cover ratio of 2.92 at Thursday’s offering points to a general lack of appetite for longer-maturity debt that is afflicting markets from Japan to Europe and the US.

Several auctions of longer tenor Japanese bonds in recent weeks have met shaky demand, with the market flashing a warning that authorities in Tokyo may need to reconsider their issuance plans. The Ministry of Finance is set to meet with primary dealers on June 20, according to people familiar with the matter, just days after the Bank of Japan reviews its bond buying plans.

“The forward-looking attitude that the MOF is moving toward reducing issuance helped out the auction results,” said Takashi Fujiwara, chief fund manager at Resona Asset Management Co. in Tokyo. “On the other hand, I don’t think that supply and demand concerns for super-long bonds have peaked yet.”

The 30-year bond extended an earlier gain, with the yield falling seven basis points to 2.875% at one point. The 40-year rate dropped as much as 8.5 basis points to 3.055%.

“With all this talk of issuance cuts, investors see little urgency in establishing large positions in super-long bonds until the Ministry of Finance clarifies its next steps,” said Shoki Omori, chief desk strategist at Mizuho Securities Co. “The market appears poised for a period of watchful waiting.”

Omori added that it seems some people failed to cover short positions going into the auction.

What Bloomberg Strategists Say...

This price action suggests bond traders were using the contract to pre-hedge the debt sale in case it went as badly as the recent 20-year sale.

Traders will be relieved there are not any more long-term auctions to navigate before the BOJ meeting in less than two weeks.

— Mark Cranfield, Markets Live strategist. Read more on MLIV.

Japanese bonds have seen some relief this week after decent demand at a sale of 10-year notes on Tuesday, and after a rally in the US Treasury market Thursday on soft US economic data.

Yields on 30-year Japanese bonds have come down from 3.185% last month, the most since inception. There are indications that the recent rout has pushed rates to attractive levels for some buyers.