Demand for Japan's two-year government bond auction plummeted, with the bid-to-cover ratio hitting a nearly one-year low and the tail spread being the widest since 2016.
On Friday, the bid-to-cover ratio for Japan's two-year government bond auction fell to 2.97 from its 12-month average of 3.74, and the tail widened sharply from the previous 0.007 to 0.034, the widest level since 2016. This reflects the market's continuously escalating expectations for further monetary policy tightening by the Bank of Japan (BOJ), leading to reduced investor interest in short-dated Japanese government bonds. Concurrently, Japan's 30-year government bond yield rose by 5 basis points to 4.11%.
Source:华尔街见闻 · Source Link
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