Japan 5-yr JGB auction bid-to-cover 3.69 versus 3.70 at prior sale in September
- Japan 5-yr JGB auction tail at 0.06 yen versus 0.03 yen at prior sale in September
Japan’s latest 5-year government bond (JGB) auction drew a bid-to-cover ratio of 3.69, marginally below 3.70 at the previous sale in September, signalling slightly softer investor appetite.
The tail — the difference between the average and lowest accepted price — widened to 0.06 yen from 0.03 yen, suggesting bids were more dispersed and demand less aggressive.
The result reflects modest caution among investors ahead of the Bank of Japan’s late-October policy meeting, where expectations have shifted toward a slower pace of further tightening following weak recent data. Despite the softer tone, overall demand remains firm by historical standards, underscoring continued domestic appetite for medium-tenor JGBs amid subdued inflation expectations and low volatility.
This article was written by Eamonn Sheridan at investinglive.com.