Japan 2-Year Bond Yield Rises as Auction Demand Slips to 3.7
Updated
Updated · Bloomberg · May 29
Japan 2-Year Bond Yield Rises as Auction Demand Slips to 3.7
3 articles · Updated · Bloomberg · May 29
Japan’s two-year government bond yield edged higher after Friday’s auction drew only lukewarm demand, reinforcing expectations of a near-term Bank of Japan rate hike.
The bid-to-cover ratio fell to 3.7 from 5.24 at the previous sale, barely matching the 12-month average of 3.74 and signaling softer investor appetite.
Auction metrics also weakened elsewhere: the tail was the widest since December, and the cut-off price came in at 100.04 versus 100.055 in a Bloomberg survey.
Those results suggest investors are demanding more compensation on short-dated Japanese debt as they position for tighter BOJ policy.
With interest rates rising, will Japan's colossal government debt finally trigger a fiscal crisis?
Trapped by war inflation and recession risk, can Japan's central bank escape its policy dilemma?
As Japan's cheap money era ends, is the $500 billion yen carry trade about to crash?