Japan’s Two-Year Bond Auction Draws Demand on Elevated Yields

Japan’s two-year government bond auction passed smoothly as the high yield lured investors despite caution over a potential near-term rate hike by the Bank of Japan.

The bid-to-cover ratio at Tuesday’s sale was 3.54 compared with 3.32 at the last auction and a 12-month average of 3.59. Japan’s bonds held onto gains after the sale.