Poor Result of Japan’s Bond Sale Signals Weak Demand From Banks
- Fukoku Life is considering halt to JGB buying in second half
- Investors seem wary of any BOJ tweak: Nissay Asset’s Miura
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The weak outcome of Japan’s 20-year bond auction is pointing to a lack of demand from domestic banks and life insurers.
The ¥1.2 trillion ($8 billion) sale of sovereign debt Tuesday indicated poor investor appetite by three major measures, including the bid-cover ratio, amid expectations of higher yields at home and abroad. Japanese major banks and regional lenders have dumped super-long Japanese government bonds for nine straight months through August, according to official data.