Japan's Bond Auction Sees Weak Demand, Yields Hit 27-Year High

Japans two-year government bond auction experienced weak demand, causing yields to rise and the bid-to-cover ratio to drop. This follows the Bank of Japans recent policy rate hike, which weakened the yen and increased yields. Market watchers noted a rise in inflation expectations, but Finance Minister Satsuki Katayamas warning about bold action against unfundamental yen moves helped calm the market. Investors now await the governments bond issuance plans linked to the fiscal 2026 budget, which may include a reduction in super-long bond issuance.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.