Bank of Japan Operations Signal Market Is Eager to Sell Debt

The Bank of Japan (BOJ) headquarters in Tokyo, Japan.

Photographer: Akio Kon/Bloomberg

Investors are getting so desperate to lighten their holdings of Japanese government bonds that some are willing to sell the securities at a discount to the central bank.

At the Bank of Japan’s regularly scheduled bond buying operation on Aug. 14 and Aug. 20, something unusual happened: the operations’ lowest accepted yield matched the accepted average.