Demand at Japan’s Two-Year Note Sale Jumps to Highest Since 2024

Japan’s two-year government bond auction on Thursday drew the strongest demand since August 2024, supported by higher yields and expectations that the Bank of Japan may not rush into further interest rate hikes.

Two-year notes pared earlier losses slightly after the result showed the bid-to-cover ratio jumped to 5.24 compared with 3.54 at the previous sale. Yields on 20- and 30-year bonds jumped 10 basis points each on concern the BOJ may have fallen behind the curve in containing inflation.