Japan 2-year JGB auction sees strongest demand since January

Japan’s latest 2-year government bond auction drew its strongest demand in six months, with a bid-to-cover ratio of 3.90, up from 3.77 at the previous sale in May.

The average yield was 0.729%, while the yield at lowest accepted price: 0.735%. The auction tail widened modestly to 0.012 yen from 0.009 yen in May.

The demand highlights continued appetite for short-dated Japanese debt amid uncertainty over the Bank of Japan’s policy path and global rate outlook.

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This article was written by Eamonn Sheridan at www.forexlive.com.