10:51 - 18.08.2026

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August 18, Fineko/abc.az. Demand at Japan's 5-year government bond auction reached its strongest level since June 2025 as higher yields attracted investor interest.

The bid-to-cover ratio at the auction stood at 4.15, up from 3.43 in the previous sale. Following the auction, the 5-year bond yield edged down by 1 basis point to 2.15%.

The rise in bond yields is supported by expectations that the Bank of Japan will raise interest rates. Financial markets are currently pricing in nearly a 75% probability of a rate hike in September.

Meanwhile, Japan's heavy debt burden and the government's expansionary fiscal stance continue to fuel lingering concerns in the bond market.