JGBS: "JAPAN 10-YEAR BOND AUCTION BID-TO-COVER RATIO 3.21 VS 3.76 AT [...]

*JAPAN 10Y GOVT BOND AUCTION MAY HAVE 99.92 LOWEST PRICE:POLL - BLOOMBERG

The Japanese Ministry of Finance (MoF) will today sell Y2.6tn of 10-year JGBs. The MoF last sold 10-year debt on 1 September 2026. 

• This month's auction offers an outright yield ~10bps above the level of last month's auction and at a fresh cycle high.
• The 2s/10s yield curve is slightly steeper than last month's auction and around 25bps below its cycle high. Moreover, the 7s/10s curve, a measure of value between JB1 futures and the 10-year, is slightly steeper than last month.
• Sentiment toward longer-dated bonds remains pressured by global bonds and higher oil prices.
• Against this backdrop, it remains to be seen whether the current 10-year yield level will be sufficient to improve demand in today's auction.
• Results are due at 0435 BST / 1235 JT.

Bloomberg Finance LP

The Japanese Ministry of Finance (MoF) will today sell Y2.6tn of 10-year JGBs. The MoF last sold 10-year debt on 1 September 2026. The auction drew cover of 3.2863x at an average yield of 2.995%, an average price of 97.76, a high yield of 3.011%, a low price of 97.64, with 29.5479% of bids allotted at the high yield.

• Last month, the 10-year auction delivered a mixed result, with the low price failing to match expectations at 97.75, according to the Bloomberg dealer poll. However, the cover ratio increased to 3.2863x from 2.5579x and the tail shortened to 0.12 from 0.46.
• That performance came with an outright yield ~15bps above the level of the prior month's auction and at a fresh cycle high.
• Results are due at 0435 BST / 1235 JT.