Japan's 40-Year Bond Auction Draws 2.70 Demand Ratio as Yield Climbs to 3.84%
Updated
Updated · Bloomberg · May 27
Japan's 40-Year Bond Auction Draws 2.70 Demand Ratio as Yield Climbs to 3.84%
1 articles · Updated · Bloomberg · May 27
Japan’s 40-year government bond sale drew a 2.70 bid-to-cover ratio on Wednesday, beating 2.54 at the previous auction and the 12-month average of 2.47.
The bonds cleared at a 3.84% yield, up from 3.6% last time and just below the highest 3.85% estimate in a Bloomberg survey.
Higher yields helped pull in buyers even as investors weighed inflation risks tied to the Middle East conflict.
The result suggests demand for Japan’s ultra-long debt held up despite broader concern that geopolitical tensions could keep price pressures elevated.
As Japan ends its cheap money era, will the unwind of the 'yen carry trade' trigger a global financial shock?
With debt over 200% of GDP, is Japan's fight against inflation pushing it toward an inevitable fiscal crisis?