Bonds

Japan Five-Year Debt Draws Solid Demand as Higher Yields Attract

Tuesday’s auction sees better-than-expected cut-off price
Increase in yields may have supported demand, MUFJ-MS says

Kazuo Ueda.
Photographer: Akio Kon/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Yumi Teso, Masaki Kondo, and Hidenori Yamanaka

September 11, 2023 at 10:18 PM UTC

Updated on

September 12, 2023 at 5:47 AM UTC

This article is for subscribers only.

An auction of five-year government notes in Japan met solid demand in the nation’s first sale since central bank Governor Kazuo Ueda jolted markets with comments that suggested negative interest rates may be on the way out.

The Ministry of Finance sold ¥2.5 trillion ($17 billion) of debt maturing in June 2028, and will offer ¥1.2 trillion of new 20-year bonds Thursday. The five-year auction drew a higher-than-expected cut-off price and its bid-to-cover ratio rebounded from the prior sale of similar securities on Aug. 15.