Japan’s two-year government bond auction on Thursday drew the weakest demand in 16 years, as investor caution lingered ahead of a potential interest rate hike by the Bank of Japan later this year.
The average bid-to-cover ratio was 2.84, the lowest since 2009, compared with 4.47 in the last sale and a 12-month average of 4.01. In another sign of weak investor demand, the tail, or gap between average and lowest-accepted prices, was 0.022, compared with 0.005 at the previous sale.
AloJapan.com