Latest news with #MikiDen
CNA
6 days ago
- Business
- CNA
Japan's 30-year bonds rise as weak auction adds to pressure to curtail issuance
TOKYO : Japan's 30-year government bond prices rose after the weakest auction of the securities in more than a year added to pressure on the Ministry of Finance to reduce supply of super-long notes. The bid-to-cover ratio, a measure of demand that gauges the number of bids against the amount of securities on offer, fell to 2.921, the worst since December 2023, and was down from 3.074 at the prior sale in May. The auction followed a weak outcome of the 40-year bond sale last week, and was a gauge for demand in so-called super-long bonds, whose yields hit record highs in May after heavy sell-offs. "Investors bought the bonds as they thought the 30-year bonds had become cheap," said Miki Den, a senior Japan rate strategist at SMBC Nikko Securities. "But fundamentally, the sentiment was supported by the expectations that the finance ministry may cut the issuance of super-long bonds," he said. The finance ministry could reduce the sale amounts as early as July, after hearing opinions from primary dealers at a meeting scheduled later this month, strategists said. Expectations for the move rose after Reuters reported last week the Ministry of Finance is considering reducing its sales of super-long bonds. The 30-year JGB yield trimmed losses soon after the auction, but fell as much as 7 basis points to 2.875 per cent. It was last down 6 bps at 2.885 per cent. Bond yields move inversely to prices. Keisuke Tsuruta, a senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities, said some investors probably rushed to buy back the securities to cover their short positions. "They needed to do so before bond prices rise further," he said. Yields across tenors fell, with the 10-year JGB yield slipping 4 bps to 1.46 per cent. The five-year yield fell 3.5 bps to 1.005 per cent. The 20-year JGB yield fell 7 bps to 2.355 per cent.
Reuters
6 days ago
- Business
- Reuters
Japan's 30-year bonds rise as weak auction adds to pressure to curtail issuance
TOKYO, June 5 (Reuters) - Japan's 30-year government bond prices rose after the weakest auction of the securities in more than a year added to pressure on the Ministry of Finance to reduce supply of super-long notes. The bid-to-cover ratio, a measure of demand that gauges the number of bids against the amount of securities on offer, fell to 2.921, the worst since December 2023, and was down from 3.074 at the prior sale in May. The auction followed a weak outcome of the 40-year bond sale last week, and was a gauge for demand in so-called super-long bonds, whose yields hit record highs in May after heavy sell-offs. "Investors bought the bonds as they thought the 30-year bonds had become cheap," said Miki Den, a senior Japan rate strategist at SMBC Nikko Securities. "But fundamentally, the sentiment was supported by the expectations that the finance ministry may cut the issuance of super-long bonds," he said. The finance ministry could reduce the sale amounts as early as July, after hearing opinions from primary dealers at a meeting scheduled later this month, strategists said. Expectations for the move rose after Reuters reported last week the Ministry of Finance is considering reducing its sales of super-long bonds. The 30-year JGB yield trimmed losses soon after the auction, but fell as much as 7 basis points to 2.875%. It was last down 6 bps at 2.885%. Bond yields move inversely to prices. Keisuke Tsuruta, a senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities, said some investors probably rushed to buy back the securities to cover their short positions. "They needed to do so before bond prices rise further," he said. Yields across tenors fell, with the 10-year JGB yield slipping 4 bps to 1.46%. The five-year yield fell 3.5 bps to 1.005%. The 20-year JGB yield fell 7 bps to 2.355%.
Mint
03-06-2025
- Business
- Mint
Japan's Bonds Pass 10-Year Supply Test as 30-Year Sale Looms
Stronger demand at Japan's 10-year bond sale brought some temporary relief as traders position for another auction in less than 48 hours that will test appetite for longer-dated debt. Government bond futures inched up to 139.15 as of 3:45 p.m. in Tokyo after a key gauge of demand at Tuesday's auction rose to the highest since April 2024. Ten-year bond yields fell 2.5 basis points to 1.48%. Investors are still wary as the market has to absorb 30-year supply on Thursday against a backdrop of rising long-term yields globally. Read: A Guide to Japan's Closely Watched Government Bond Auctions 'It was a good result as the 1.5% level was easy to buy at,' said Miki Den, a senior rates strategist at SMBC Nikko Securities Inc. in Tokyo. 'Although this will support the bond market, it's unlikely that yields will fall rapidly,' with the 30-year auction looming. Confidence in longer-maturity notes globally has been crumbling as investors are concerned about massive budget deficits, which may result in heftier debt loads in some of the world's biggest economies. On top of that, the Bank of Japan's pullback from its huge bond purchases has led to a sharp steepening of the nation's bond curve and heightened worries about government borrowing. In a sign of concern about the investor base for Japanese bonds, the government is urging more domestic buying of the notes, according to a draft of its annual fiscal policy plan seen by Bloomberg. The selloff in Japanese bonds has been exacerbated by concerns about which investors will step in as the BOJ reduces its holdings. Governor Kazuo Ueda hinted that the central bank may continue to slow the pace of government bond buying next fiscal year, in response to questions in parliament Tuesday. The central bank will review its bond purchase plan at its June 16-17 policy meeting. After years of yields being pinned down at artificially low levels by the central bank, Japan's bond market is now experiencing a painful transition to normal functioning. This was laid bare by a lack of demand at Japan's 20- and 40-year debt sales last month. Investors will be paying close attention to the 30-year auction after yields last month hit 3.185%, the highest level since the tenor was first sold. Thirty-year yields rose half a basis point to 2.935% on Tuesday afternoon in Tokyo. Since last summer, Japan's central bank has been reducing its purchases of government bonds by ¥400 billion every quarter, but that process will likely come to a halt, former board member Makoto Sakurai said in an interview Monday in Tokyo. Speculation has increased that the finance ministry may adjust its debt sales after it sent a questionnaire last week to market participants asking their views on issuance and the current situation. That news 'may have reduced concerns about the problems in the super-long sector spilling over into 10-year bonds,' said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management Co. The bid-to-cover ratio at the ¥2.6 trillion sale of 10-year notes rose to 3.66, compared with 2.54 at last month's auction, and higher than the average over the past year. 'With the 30-year bond auction coming up on Thursday, the fog will not lift all at once, but this result is rather good news,' said Inadome. With assistance from Masaki Kondo, Naoto Hosoda, Hidenori Yamanaka, Eddy Duan and Yuko Takeo. This article was generated from an automated news agency feed without modifications to text.
Yahoo
03-06-2025
- Business
- Yahoo
Japan's Bonds Pass 10-Year Supply Test as 30-Year Sale Looms
(Bloomberg) -- Stronger demand at Japan's 10-year bond sale brought some temporary relief as traders position for another auction in less than 48 hours that will test appetite for longer-dated debt. Where the Wild Children's Museums Are Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry The Economic Benefits of Paying Workers to Move Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania At London's New Design Museum, Visitors Get Hands-On Access Government bond futures inched up to 139.15 as of 3:45 p.m. in Tokyo after a key gauge of demand at Tuesday's auction rose to the highest since April 2024. Ten-year bond yields fell 2.5 basis points to 1.48%. Investors are still wary as the market has to absorb 30-year supply on Thursday against a backdrop of rising long-term yields globally. Read: A Guide to Japan's Closely Watched Government Bond Auctions 'It was a good result as the 1.5% level was easy to buy at,' said Miki Den, a senior rates strategist at SMBC Nikko Securities Inc. in Tokyo. 'Although this will support the bond market, it's unlikely that yields will fall rapidly,' with the 30-year auction looming. Confidence in longer-maturity notes globally has been crumbling as investors are concerned about massive budget deficits, which may result in heftier debt loads in some of the world's biggest economies. On top of that, the Bank of Japan's pullback from its huge bond purchases has led to a sharp steepening of the nation's bond curve and heightened worries about government borrowing. In a sign of concern about the investor base for Japanese bonds, the government is urging more domestic buying of the notes, according to a draft of its annual fiscal policy plan seen by Bloomberg. The selloff in Japanese bonds has been exacerbated by concerns about which investors will step in as the BOJ reduces its holdings. Governor Kazuo Ueda hinted that the central bank may continue to slow the pace of government bond buying next fiscal year, in response to questions in parliament Tuesday. The central bank will review its bond purchase plan at its June 16-17 policy meeting. After years of yields being pinned down at artificially low levels by the central bank, Japan's bond market is now experiencing a painful transition to normal functioning. This was laid bare by a lack of demand at Japan's 20- and 40-year debt sales last month. Investors will be paying close attention to the 30-year auction after yields last month hit 3.185%, the highest level since the tenor was first sold. Thirty-year yields rose half a basis point to 2.935% on Tuesday afternoon in Tokyo. Since last summer, Japan's central bank has been reducing its purchases of government bonds by ¥400 billion ($2.8 billion) every quarter, but that process will likely come to a halt, former board member Makoto Sakurai said in an interview Monday in Tokyo. Speculation has increased that the finance ministry may adjust its debt sales after it sent a questionnaire last week to market participants asking their views on issuance and the current situation. That news 'may have reduced concerns about the problems in the super-long sector spilling over into 10-year bonds,' said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management Co. The bid-to-cover ratio at the ¥2.6 trillion sale of 10-year notes rose to 3.66, compared with 2.54 at last month's auction, and higher than the average over the past year. 'With the 30-year bond auction coming up on Thursday, the fog will not lift all at once, but this result is rather good news,' said Inadome. --With assistance from Masaki Kondo, Naoto Hosoda, Hidenori Yamanaka, Eddy Duan and Yuko Takeo. (Adds government's draft fiscal policy plan in fifth paragraph, updates bond yields.) YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To Will Small Business Owners Knock Down Trump's Mighty Tariffs? ©2025 Bloomberg L.P.
Wall Street Journal
08-05-2025
- Business
- Wall Street Journal
JGBs Consolidate Ahead of Finance Ministry's 10-Year Auction
0020 GMT — JGBs consolidate in the morning Tokyo session ahead of the Japanese Finance Ministry's auction today of 2.6 trillion yen in 10-year government bonds. 'Tariff uncertainty could sap auction bids from some quarters,' SMBC Nikko Securities' Miki Den says in a research report. However, the Bank of Japan's dovish posturing has probably led to many investors trimming their outlook on JGB yields, so the auction is expected to 'clear smoothly,' the senior Japan rates strategist adds. The 10-year JGB yield is down 0.5bps at 1.290%. (
