Japan’s Bonds Set for Biggest Drop in 2 Weeks on Auction Results
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Japan’s government bonds fell, heading for their biggest decline in two weeks, as the nation’s stocks rallied and a sale of 20-year securities met the weakest demand in nine months.
Benchmark 10-year yields were set for the highest close since April 2012 after the government’s offer of 1.2 trillion yen ($11.8 billion) in 20-year debt drew bids for 2.54 times the amount on offer, down from a bid-to-cover ratio of 3.68 at the previous sale. Bank of Japan Policy Board Member Ryuzo Miyao said a better economic outlook could drive yields up.