- Japan's two-year government bond auction on Thursday saw weaker demand, with the bid-to-cover ratio dropping to 3.63 from 4.82 at the previous sale and below the 12-month average of 3.81.
- The decline in auction demand is driven by growing expectations that the central bank will tighten monetary policy.
- Bond futures extended their losses following the release of the auction results.
Quotes
“Japan’s two-year government bond auction Thursday saw lower demand than the 12-month average amid growing expectations of central bank tightening.”