An auction of five-year Japanese government bonds saw the lowest price in line with market expectations even though demand fell slightly as investors mull the Bank of Japan’s rate hike path.
Bond futures rose slightly and short-dated bond yields dipped after the auction where the bid-to-cover ratio was 3.33, compared with 3.69 at the previous auction, and the 12-month average, which is also 3.69. The lowest price was 100.22.
AloJapan.com