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Updated · Bloomberg · May 20Japan 20-Year Bond Yields Drop 10 Basis Points as Auction Demand Beats 12-Month Average
4 articles · Updated · Bloomberg · May 20
- Japan’s 20-year yield fell as much as 10 basis points to 3.68% after Wednesday’s auction drew stronger-than-usual demand.
- A 4.01 bid-to-cover ratio topped the 12-month average of 3.43, indicating investors stepped in as higher yields improved the bond’s appeal.
- The average accepted yield still rose to 3.711%—the highest since 1996—showing buyers demanded elevated compensation.
- That demand came despite lingering concerns about inflation and government spending, two pressures that have weighed on longer-dated Japanese debt.
Is Japan’s retreat from US bonds the real reason American long-term borrowing costs are soaring? As Japan abandons zero rates, is the unwinding yen carry trade the next global 'black swan' event? With debt over 200% of GDP, can Japan's central bank fight inflation without creating a fiscal crisis?