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Yahoo
a day ago
- Business
- Yahoo
Japanese Bonds Rise as 30-Year Auction Brings Some Relief
(Bloomberg) -- Japanese government bonds rose after an auction of 30-year debt wasn't as bad as many investors had feared. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design While immediate market reaction indicated relief — yields edged lower after the sale — the bid-to-cover ratio of 2.92 at Thursday's offering points to a general lack of appetite for longer-maturity debt that is afflicting markets from Japan to Europe and the US. Several auctions of longer tenor Japanese bonds in recent weeks have met shaky demand, with the market flashing a warning that authorities in Tokyo may need to reconsider their issuance plans. The Ministry of Finance is set to meet with primary dealers on June 20, according to people familiar with the matter, just days after the Bank of Japan reviews its bond buying plans. 'The forward-looking attitude that the MOF is moving toward reducing issuance helped out the auction results,' said Takashi Fujiwara, chief fund manager at Resona Asset Management Co. in Tokyo. 'On the other hand, I don't think that supply and demand concerns for super-long bonds have peaked yet.' The 30-year bond extended an earlier gain, with the yield falling seven basis points to 2.875% at one point. The 40-year rate dropped as much as 8.5 basis points to 3.055%. 'With all this talk of issuance cuts, investors see little urgency in establishing large positions in super-long bonds until the Ministry of Finance clarifies its next steps,' said Shoki Omori, chief desk strategist at Mizuho Securities Co. 'The market appears poised for a period of watchful waiting.' Omori added that it seems some people failed to cover short positions going into the auction. What Bloomberg Strategists Say... This price action suggests bond traders were using the contract to pre-hedge the debt sale in case it went as badly as the recent 20-year sale. Traders will be relieved there are not any more long-term auctions to navigate before the BOJ meeting in less than two weeks. — Mark Cranfield, Markets Live strategist. Read more on MLIV. Japanese bonds have seen some relief this week after decent demand at a sale of 10-year notes on Tuesday, and after a rally in the US Treasury market Thursday on soft US economic data. Yields on 30-year Japanese bonds have come down from 3.185% last month, the most since inception. There are indications that the recent rout has pushed rates to attractive levels for some buyers. Investors can pick up bargains in Japanese government bonds despite a wave of recent selling that has spread volatility throughout global debt markets, according to Pacific Investment Management Co. Still, the auction results show how the bond market is concerned that the government's borrowing plans may not be sustainable as the central bank reduces its footprint in the market. Governor Kazuo Ueda hinted at the likelihood that the Bank of Japan will continue to slow the pace of government bond purchases next fiscal year, meaning that the board meeting on June 16-17 will be closely watched. Miki Den, a senior rates strategist at SMBC Nikko Securities Inc. in Tokyo, said 'supply-demand concerns will linger' until the MOF's meeting with primary dealers a few days later. 'I expect super-long term yields to remain flat or rise slightly,' he said. The bid-to-cover ratio at the sale was lower than 3.07 the previous month, and the 12-month average of 3.39. The lowest price was below that of a Bloomberg survey. 'The auction wasn't good, but within the acceptable range,' said Masayuki Koguchi, executive chief fund manager at Mitsubishi UFJ Asset Management Co. The tail, or the gap between average and lowest-accepted prices, came in at 0.49, indicating weaker demand than at the prior auction. However, it was still shorter than at April's bond sale, which was seen as positive by the market, said Koguchi. --With assistance from Masahiro Hidaka, Masaki Kondo and Hidenori Yamanaka. (Updates with comment in fourth paragraph.) Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Recorder
3 days ago
- Business
- Business Recorder
Japanese government bond yields retreat after strong 10-year note auction
TOKYO: Yields on 10-year Japanese government bonds sank on Tuesday, reversing an earlier rise, after results of an auction of the securities saw the highest demand since April last year. The 10-year yield dropped 3 basis points (bps) to 1.475%, as of 0349 GMT, following an earlier rise of as much as 1.5 bps as Japanese yields initially tracked a rise among U.S. peers from overnight. Benchmark 10-year JGB futures rose 0.15 yen to 139.17 yen. Two-year JGB yields slipped 0.5 bp to 0.745%. Other tenors had yet to trade following the announcement of the auction results at 0335 GMT. Mizuho's chief desk strategist, Shoki Omori, called the result 'a remarkably robust outcome … that likely caught most observers off guard.' The bid-to-cover ratio, a measure of demand that gauges the number of bids against the amount of securities on offer, rose to 3.663 from 2.544 at the prior sale in May. At the auction last April, the ratio was 3.799.
Time of India
3 days ago
- Business
- Time of India
Japanese government bond yields retreat after strong 10-year note auction
Yields on 10-year Japanese government bonds sank on Tuesday, reversing an earlier rise, after results of an auction of the securities saw the highest demand since April last year. The 10-year yield dropped 3 basis points (bps) to 1.475%, as of 0349 GMT, following an earlier rise of as much as 1.5 bps as Japanese yields initially tracked a rise among U.S. peers from overnight. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Benchmark 10-year JGB futures rose 0.15 yen to 139.17 yen. Bonds Corner Powered By Japanese government bond yields retreat after strong 10-year note auction Japanese government bond yields experienced a drop. This followed an auction of 10-year securities. The auction saw the highest demand since April of the previous year. The 10-year yield decreased by 3 basis points. Mizuho strategist Shoki Omori described the auction results as remarkably robust. The bid-to-cover ratio also increased significantly from the previous sale. Indian bonds flat ahead of state debt supply, RBI policy decision Lendingkart Finance reports losses, breaches bond covenant for 2024-25 India's index-linked bonds see record foreign selling in May on profit-booking, currency swings India bond yields resume decline as all eyes on RBI decision this week Browse all Bonds News with Two-year JGB yields slipped 0.5 bp to 0.745%. Other tenors had yet to trade following the announcement of the auction results at 0335 GMT. Live Events Mizuho's chief desk strategist, Shoki Omori , called the result "a remarkably robust outcome ... that likely caught most observers off guard." The bid-to-cover ratio , a measure of demand that gauges the number of bids against the amount of securities on offer, rose to 3.663 from 2.544 at the prior sale in May. At the auction last April, the ratio was 3.799.
Zawya
3 days ago
- Business
- Zawya
Japanese government bond yields retreat after strong 10-year note auction
TOKYO - Yields on 10-year Japanese government bonds sank on Tuesday, reversing an earlier rise, after results of an auction of the securities saw the highest demand since April last year. The 10-year yield dropped 3 basis points (bps) to 1.475%, as of 0349 GMT, following an earlier rise of as much as 1.5 bps as Japanese yields initially tracked a rise among U.S. peers from overnight. Benchmark 10-year JGB futures rose 0.15 yen to 139.17 yen. Two-year JGB yields slipped 0.5 bp to 0.745%. Other tenors had yet to trade following the announcement of the auction results at 0335 GMT. Mizuho's chief desk strategist, Shoki Omori, called the result "a remarkably robust outcome ... that likely caught most observers off guard." The bid-to-cover ratio, a measure of demand that gauges the number of bids against the amount of securities on offer, rose to 3.663 from 2.544 at the prior sale in May. At the auction last April, the ratio was 3.799. (Reporting by Kevin Buckland; Editing by Sonia Cheema)
Business Recorder
20-05-2025
- Business
- Business Recorder
Japan's bond yields jump after poor outcome of 20-year debt auction
TOKYO: Japanese government bond yields jumped on Tuesday as investors sold the securities after poor results at an auction of 20-year bonds spurred worries about demand for super-long debt. The 10-year JGB yield vaulted 4.5 basis points (bps) to 1.525%, its highest level since March 28, after the finance ministry announced the results of the sale in the early Tokyo afternoon. Benchmark 10-year JGB futures were last down 0.19 yen at 139.06 yen. Bond yields move inversely to prices. The 40-year yield surged 10 bps to 3.55%, the highest level since the debt's inception in 2007. The 20- and 30-year bonds, as well as the two-year note, had yet to trade following the release of the auction details. JGB yields with super-long maturities jump ahead of auction Mizuho strategist Shoki Omori called the auction results 'lacklustre', 'highlighting persistent supply-demand softness in the super-long sector and fueling concerns over who, if anyone, will step in to buy.' Brokers and investors 'appear reluctant to hold inventory, raising the likelihood of a sell-off spiral that extends beyond the 20-year tenor into both the 10-year and 30-year markets,' Omori said. The five-year yield rose 1.5 bps to 1.01%, the highest since April 2, when US President Donald Trump announced his 'Liberation Day' tariffs.
