Japan Five-Year Bond Sale Sees Firm Demand as BOJ Path Clouded

Japan’s five-year government bond auction drew solid demand as investors mull the Bank of Japan’s rate-hike path amid ongoing uncertainties surrounding the Iran war.

The bid-to-cover ratio at the sale was 3.69, the highest since October, and above the 12-month average of 3.44. In another sign of strong demand, the tail was the smallest since January 2025. Japan’s bond futures rose after the auction.