Ten-Year JGB Auction Draws Demand Aligned with Annual Average

Deep News
Yesterday

Demand at Japan's 10-year government bond auction matched the average seen over the past twelve months, with elevated yields attracting investor interest.

The bid-to-cover ratio, a key gauge of demand, came in at 3.29 times at Tuesday's sale, compared with 2.56 times at the previous auction and a 12-month average of 3.26 times.

Yields on 10-year JGBs touched 2.99% on Tuesday, marking a three-decade high and approaching the psychologically significant 3% threshold.

The Bank of Japan is scheduled to announce its policy decision on September 18. In remarks last week, BOJ Deputy Governor Ryozo Himino indicated that the central bank may keep its options open regarding a potential rate hike next month.

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