US EditionJapan’s 40-Year Bond Sale Draws Weakest Demand Since July
- Japan's Ministry of Finance held an auction of 40-year government bonds on Wednesday that attracted the weakest demand since July 2024 in Tokyo.
- The low demand follows a poor 20-year bond auction last week, amid a month of heavy selling and Japan’s central bank scaling back bond purchases.
- Japan’s debt-to-GDP ratio stands at 260%, yields on long-term bonds have risen sharply, and institutional investors face large paper losses, raising concerns about confidence.
- The 40-year auction's bid-to-cover ratio was 2.21, the lowest since July, on roughly 500 billion yen offered, signaling waning appetite as yields rise when demand falls.
- This bond market weakness could test how Japan and other debt-heavy nations manage growing fiscal stress amid subdued global investor confidence.
37 Articles
37 Articles
LancasterOnline
World shares are mixed after a Japanese government bond auction falls flat
World shares are mixed after a closely watched auction of 40-year Japanese government bonds fell flat as worries mount over growing levels of debt. U.S. futures were little changed and oil prices rose. Demand for the Japanese government bonds was…
Super-long JGB yields rise from 3-week lows ahead of 40-year bond auction
By Kevin Buckland TOKYO (Reuters) -Long-dated Japanese government bond yields climbed off three-week lows on Wednesday, with investors closely monitoring a 40-year bond auction for indications of a recovery in demand. The 40-year JGB yield rose 3.5 basis points (bps) to 3.32% by 0200 GMT, rebounding from a sharp 26.5 bps decline to 3.285% – its lowest level since May 7 – after Reuters reported that the finance ministry is considering trimming th…
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