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The Japanese Ministry of Finance (MoF) will today sell Y2.4tn of 5-Year JGBs. MoF last sold 5-year debt on 13 November 2025.

• Yields on today’s offering are hovering near cycle highs, approximately 20bps above last month’s issuance levels.
• Moreover, the 2s/5s curve is holding near its cycle high of 38bps, approximately 5bps steeper than last month and at its steepest since late 2009.
• Amid strong demand at recent auctions, today’s results will be closely watched for signs of continued strength.
• Results are due at 0335 GMT / 1235 JST.

*JAPAN 5Y GOVT BOND AUCTION MAY HAVE 99.81 LOWEST PRICE: POLL- BLOOMBERG

The Japanese Ministry of Finance (MoF) will today sell Y2.4tn of 5-Year JGBs. MoF last sold 5-year debt on 13 November 2025, with the auction drawing cover of 3.3258x at an average yield of 1.245%, an average price of 100.25, a high yield of 1.251%, a low price of 100.22, with 31.6009% of bids allotted at the high yield.

• Last month’s 5-year bond auction delivered mixed demand signals. The low price was in line with expectations at 100.22, but the bid-to-cover ratio fell to 3.33x from 3.69x, while the tail narrowed to 0.03 from 0.06. The result was broadly consistent with the subdued demand seen at November’s 10-year auction.
• However, this month’s 10-year bond sale showed strong demand metrics, with the low price beating expectations at 98.50, according to the Bloomberg dealer poll. Moreover, the cover ratio increased to 3.5913x from 2.9734x, and the tail shortened to 0.04 from 0.13. This performance came with an outright 10-year yield at a fresh cycle high, around 20bps above the level in the prior month's auction.
• Results are due at 0335 GMT / 1235 JST.