Archive · 17 Sep 2025
Japanese 20-Year Bond Auction Sees Strongest Demand Since 2020
Japan recently had an auction for 20-year bonds, and it went really well!
Investors wanted to buy a lot of these bonds, more than they have since 2020.
This pushed the interest rates (yields) on these bonds down a bit.
The auction's success is good news for the government.
The market had been worried about changes in government policies.
Now people are watching to see what happens with the next bond sale.
Japanese 20-year bond auction saw strongest demand since 2020.
Yields on 20-year sovereign notes fell 3.5 basis points to 2.635%.
The bid-to-cover ratio increased to 4.
The tail, or the gap between the average and lowest accepted price, narrowed to 0.10.
Traders are looking ahead to next week’s 40-year bond sale.
- Who
- Investors in Japanese bonds and the Ministry of Finance
- What
- Demand for Japanese 20-year bonds was strong at auction.
- When
- The auction took place recently. The Federal Reserve’s and the Bank of Japan's meetings are this week.
- Where
- Japan
- Why
- The strong auction result provided relief and a welcome respite for the Japanese government bond market. The result may also ease pressure on the Ministry of Finance.
- Bid-to-Cover Ratio
- 4.0 (Strongest since 2020)
- Yields on 20-Year Bonds
- Fell 3.5 basis points to 2.635%
- Previous Bid-to-Cover Ratio
- 3.09 (August)
- 12-Month Average
- 3.2
- Tail
- Narrowed to 0.10 (from 0.13 last month)
- Next Sale
- 40-year bond sale next week