Japan 40-Year Bond Auction Sees Weakest Demand Ratio Since 2011

Japan’s 40-Year Government Bond Auction Saw Its Weakest Demand Since 2011 Amid Concerns Over Government Spending and after the US and Japan Reached A Trade Deal.

The bid-to-crosser ratio, a measure of demand, came in at 2.127, compared to 2.214 at the Previous Auction.

The salary come after japanese Prime minister Fiscal Concerns are ramping up after Local Media Reports on Wedns Day that the Nation’s Leader Will Announs His Resignation in August.

Bond Yields Wednesday Rose Accross the curve following us president donald trump’s announcing of a 15% tariff on importants from Japan. The Benchmark Topix and Nikkei 225 Share Gauges Both Rallied More Than 3% as Market Sentiment Improved.

What bloomberg strategists say:

Long-Term JGBS will continue to Struggle after the 40-year auction posted the weakest demand since 2011 and that sugges more curve steeping is on the way.

– Mark Cranfield, Mliv Strategist. Read more on Mliv

Yields have traded recently at multi-yar highs at a time when the bank of japan has been gradually paring back its massive bond purchases. The Ministry of Finance Reduced The Issuance of Longer-Maturity Bonds from this month to calm the Volatily in the Bond Market.

Boj Deputy Governor Shinichi Uchida Indicated There Overnight index swaps show a more than 80% chance of a rate hike by the end of the year on Wedns, Compared to 59% a day earlier.

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