Japanese 2-Year Government Bond Auction Sees Lowest Bid-to-Cover Ratio Since 2010

The bid-to-cover ratio for Japan’s 2-year government bond auction has reached its lowest level since 2010, indicating market weakness.

The bid-to-cover ratio dropped from 3.950 on July 27 to 3.206, with an average awarded yield of 0.011%, the highest level since recording 0.043% in December last year.

This also marks the second occurrence of a positive average awarded yield since the Bank of Japan introduced its negative interest rate policy in 2016.