Japan 5-year JGB auction bid-to-cover 3.69 vs 3.70 at pre-sale in September
- 5-year JGB auctioned in Japan at 0.06 yen vs 0.03 yen at pre-sale in September
The bid-to-cover ratio at Japan’s latest 5-year government bond (JGB) auction stood at 3.69, down slightly from 3.70 at the previous sale in September, indicating slightly softer interest from investors.
The tail – the difference between the average and minimum accepted price – increased from 0.03 yen to 0.06 yen, suggesting bids were more dispersed and asking was less aggressive.
The result reflects modest caution among investors ahead of the Bank of Japan’s policy meeting in late October, where expectations have shifted toward a slower pace of further tightening after weak recent data. Despite the subdued tone, overall demand remains strong by historical standards, underscoring the continued domestic appetite for medium-term JGBs amid low inflation expectations and low volatility.
