Bonds
Japan’s Two-Year Sovereign Note Auction Sees Solid Demand Despite Low Yield
- Auctions bid-cover rations climbs to highest level since 2019
- Investors bought to reduce duration amid rate hike concerns
The Bank of Japan headquarters in Tokyo.
Photographer: Shoko Takayasu/BloombergThis article is for subscribers only.
Japan’s auction of two-year sovereign notes met strong demand despite the debt offering lower yields than previous sales.
The average bid-to-cover ratio for the debt rose to 5.54, the highest since 2019 for the Ministry of Finance’s sale of ¥2.6 trillion ($18 billion) in bonds maturing in September 2026. The lowest price accepted was ¥100.025, exceeding the ¥100.005 forecast by market participants.