Latest news with #MikiDen
Yahoo
10-07-2025
- Business
- Yahoo
Japan 20-Year Bond Sale Leaves Traders in Limbo Before Election
(Bloomberg) -- Japan's 20-year government bond auction went off without spectacle, leaving an uneasy calm ahead of elections later this month as investors look for signs of a possible increase in the nation's debt. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? Denver City Hall Takes a Page From NASA Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On Demand showed some improvement over recent sales. The bid-to-cover ratio of 3.15 was below the 12-month average but still the highest level since March. The tail, or gap between average and lowest-accepted prices, was 0.18, the narrowest since January. The Ministry of Finance has adjusted its issuance to reduce the amount of longer-maturity bonds it sells, which has curbed bond-market volatility. Yet investors are concerned about the market impact of rising debt levels, which are in the spotlight as politicians seek to woo voters with more government spending or tax cuts ahead of an election of the Upper House later this month. 'The 20-year bond auction held today produced a neutral outcome, with neither the bid-to-cover ratio nor the tail being particularly weak,' said Miki Den, senior rates strategist at SMBC Nikko Securities. 'In addition to the fact that yield levels had become more attractive, the stabilization of super-long-term bonds since the previous day and the halt in the steepening of the yield curve also contributed to making the bonds easier to buy.' The yield on the 20-year bond were unchanged on the day at 2.51%, after dropping 2.5 basis points ahead of the auction. Bond futures rose 4 ticks to 138.73. Sovereign bond yields surged globally earlier this week, with the 30-year Treasury yield heading back toward 5% as some of the world's biggest banks sent fresh warnings over fiscal spending concerns. US Treasuries rallied on Wednesday after an auction of 10-year notes drew strong demand, easing concerns that investors will balk at financing swelling US deficits. What Bloomberg Strategists say: 'The 20-year JGB auction just went off with solid metrics on the surface. However, with upper house elections to come, bond investors will go on being wary of longer-end debt amid fiscal spending risks.' — Mark Cranfield, Markets Live Strategist, Singapore. For the full analysis, click here. In Japan, some major life insurers continue to be skeptical. Meiji Yasuda Life Insurance Co. said it plans to avoid actively investing in Japanese super-long-term government bonds for the next year or two as interest rates may rise and supply pressures build. This is right when the central bank — the dominant holder — is trying to gradually back out of the market. A partial list of winning bidders showed Nomura Securities Co. scooped up the most bonds at Thursday's sale with a more than 16% take-up, while Mitsubishi UFJ Morgan Stanley Securities Co. came in second with over 11%. These names may be an indication of solid support from long-term investors, according to Bloomberg's Cranfield. The election, scheduled for July 20, comes on the heels of slightly higher tariffs of 25% starting August 1 imposed by US President Donald Trump earlier this week. The US is also monitoring the upcoming vote closely — US Treasury Secretary Scott Bessent has said it is putting 'domestic constraints' on sealing a trade deal. 'Uncertainty should remain until we can see how the political landscape evolves after the election,' said Ken Matsumoto, a macro strategist at Credit Agricole in Tokyo. 'We don't think super long ends like thirty-year would head toward 4%, so the current level of around 3% is understandable.' --With assistance from Mia Glass. (Adds buyer names, updates yields) Will Trade War Make South India the Next Manufacturing Hub? 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
Japan 20-Year Bond Sale Leaves Traders in Limbo Before Election
(Bloomberg) -- Japan's 20-year government bond auction went off without spectacle, leaving an uneasy calm ahead of elections later this month as investors look for signs of a possible increase in the nation's debt. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? Denver City Hall Takes a Page From NASA Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On Demand showed some improvement over recent sales. The bid-to-cover ratio of 3.15 was below the 12-month average but still the highest level since March. The tail, or gap between average and lowest-accepted prices, was 0.18, the narrowest since January. The Ministry of Finance has adjusted its issuance to reduce the amount of longer-maturity bonds it sells, which has curbed bond-market volatility. Yet investors are concerned about the market impact of rising debt levels, which are in the spotlight as politicians seek to woo voters with more government spending or tax cuts ahead of an election of the Upper House later this month. 'The 20-year bond auction held today produced a neutral outcome, with neither the bid-to-cover ratio nor the tail being particularly weak,' said Miki Den, senior rates strategist at SMBC Nikko Securities. 'In addition to the fact that yield levels had become more attractive, the stabilization of super-long-term bonds since the previous day and the halt in the steepening of the yield curve also contributed to making the bonds easier to buy.' The yield on the 20-year bond were unchanged on the day at 2.51%, after dropping 2.5 basis points ahead of the auction. Bond futures rose 4 ticks to 138.73. Sovereign bond yields surged globally earlier this week, with the 30-year Treasury yield heading back toward 5% as some of the world's biggest banks sent fresh warnings over fiscal spending concerns. US Treasuries rallied on Wednesday after an auction of 10-year notes drew strong demand, easing concerns that investors will balk at financing swelling US deficits. What Bloomberg Strategists say: 'The 20-year JGB auction just went off with solid metrics on the surface. However, with upper house elections to come, bond investors will go on being wary of longer-end debt amid fiscal spending risks.' — Mark Cranfield, Markets Live Strategist, Singapore. For the full analysis, click here. In Japan, some major life insurers continue to be skeptical. Meiji Yasuda Life Insurance Co. said it plans to avoid actively investing in Japanese super-long-term government bonds for the next year or two as interest rates may rise and supply pressures build. This is right when the central bank — the dominant holder — is trying to gradually back out of the market. A partial list of winning bidders showed Nomura Securities Co. scooped up the most bonds at Thursday's sale with a more than 16% take-up, while Mitsubishi UFJ Morgan Stanley Securities Co. came in second with over 11%. These names may be an indication of solid support from long-term investors, according to Bloomberg's Cranfield. The election, scheduled for July 20, comes on the heels of slightly higher tariffs of 25% starting August 1 imposed by US President Donald Trump earlier this week. The US is also monitoring the upcoming vote closely — US Treasury Secretary Scott Bessent has said it is putting 'domestic constraints' on sealing a trade deal. 'Uncertainty should remain until we can see how the political landscape evolves after the election,' said Ken Matsumoto, a macro strategist at Credit Agricole in Tokyo. 'We don't think super long ends like thirty-year would head toward 4%, so the current level of around 3% is understandable.' --With assistance from Mia Glass. (Adds buyer names, updates yields) Will Trade War Make South India the Next Manufacturing Hub? 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too ©2025 Bloomberg L.P. Sign in to access your portfolio
Mint
01-07-2025
- Automotive
- Mint
Japan's 10-Year Bond Auction Gives Support Ahead of 30-Year Sale
Demand at Japan's sale of 10-year government notes was relatively strong in a boost to sentiment going into a key auction of 30-year bonds later this week. The bid-to-cover ratio was at 3.51, higher than the 12-month average of 3.14, as expectations for rate hikes by the central bank receded and upward pressure on longer-maturity yields eased. Ten-year bonds rallied. Japan's sovereign debt auctions have been in the spotlight since late May after a poorly received auction of 20-year bonds sent super-long yields to record highs. That spike in yields flowed through into global debt markets, where investors have been on guard over expanding government deficits, and prompted Japan's Ministry of Finance to tweak its issuance plans from this month. 'Market sentiment seems to be good for JGBs entering a new quarter, especially after the meeting between the MOF and primary dealers late last month resulted in a reduction of super-long bond issuance amounts,' said Anmol Agrawal, a strategist at Intouch Capital Markets Pte. 'The litmus test for markets will now be the upcoming 30-year bond auction on Thursday.' The 10-year JGB yield fell 4 basis points to 1.39% to the lowest since June 13th after the auction results. Bond futures rose 20 ticks to 139.22. Ten-year notes serve as a benchmark for Japan's long-term lending rates, and play a key role in influencing mortgage rates and corporate borrowing costs. The bond auction was 'very strong,' said Miki Den, a senior rates strategist at SMBC Nikko Securities Inc. Many investors may have judged that the Bank of Japan cannot raise interest rates until there's a recovery in sentiment in the automobile sector, which dropped significantly in the Tankan survey, he said. The sale comes after results from a confidence survey among Japan's largest manufacturers edged up in June. That said, there are lingering concerns as the auto sector remains under pressure as Japan continues to seek a comprehensive agreement that includes sector-specific tariffs which includes carmakers. But still, the lack of a meaningful decline in 30- and 40-year yields suggests that caution surrounding super-long bonds remains, as the market still has to navigate a 30-year bond sale on Thursday. What Bloomberg Strategists Say... JGB futures are firmer after Tuesday's 10-year auction produced solid metrics, but the good mood will struggle to sustain after the strong Tankan report that came earlier. The data opened the door for BOJ Governor Ueda to lean hawkish when he speaks later today at Sintra in Portugal. With a tricky 30-year debt sale still to come on Thursday, JGB traders are likely to curb their enthusiasm. — Mark Cranfield, MLIV Strategist. Read more on MLIV The bid-to-cover ratio at Tuesday's sale was slightly lower than 3.66 at last month's auction of that tenor. The tail, or gap between average and lowest-accepted prices, came in at 0.03, compared with 0.01 previously. In order to stabilize demand for Japanese government bonds, the finance ministry announced changes to its bond issuance plan in June. The 10-year issuance amount was left unchanged, underscoring steady investor appetite for the sector. The ministry will reduce issuance of 20-, 30- and 40-year bonds from this month. Separately, the Bank of Japan said last month it would slow down its withdrawal from the market from next year in a move aimed at ensuring stability. With assistance from Masahiro Hidaka, Umesh Desai and Hidenori Yamanaka. This article was generated from an automated news agency feed without modifications to text.
Mint
01-07-2025
- Automotive
- Mint
Japan's 10-year bond auction eases market jitters ahead of key 30-year sale
Ahead of the 30-year bond auction later this week, investor sentiment received a lift following a relatively steady sale of Japan's sale of 10-year government notes. According to a Bloomberg report, the bid-to-cover ratio was at 3.51, higher than the 12-month average of 3.14, as expectations for rate hikes by the central bank receded and upward pressure on longer-maturity yields eased. As a result, the ten-year bonds rallied. Japan's sovereign debt auctions have drawn heightened attention since late May, following a weak 20-year bond auction that pushed super-long yields to record highs. The surge in yields rippled through global debt markets, where investors are increasingly wary of growing government deficits. In response, Japan's Ministry of Finance has adjusted its bond issuance plans starting this month. 'Market sentiment seems to be good for JGBs entering a new quarter, especially after the meeting between the MOF and primary dealers late last month resulted in a reduction of super-long bond issuance amounts,' Anmol Agrawal, a strategist at Intouch Capital Markets Pte, told Bloomberg. 'The litmus test for markets will now be the upcoming 30-year bond auction on Thursday.' The 10-year Japanese government bond (JGB) yield dropped 4 basis points to 1.39% following the auction results, while bond futures climbed 23 ticks to 139.25. As a benchmark for Japan's long-term lending rates, the 10-year note plays a crucial role in shaping mortgage rates and corporate borrowing costs across the economy. The bond auction was 'very strong,' said Miki Den, a senior rates strategist at SMBC Nikko Securities Inc told Bloomberg. Many investors may have judged that the Bank of Japan cannot raise interest rates until there's a recovery in sentiment in the automobile sector, which dropped significantly in the Tankan survey, he said. The sale comes after results from a confidence survey among Japan's largest manufacturers edged up in June. However, the lack of a meaningful decline in 30- and 40-year yields suggests that caution surrounding super-long bonds remains, as the market still has to navigate a 30-year bond sale on Thursday. JGB futures are firmer after Tuesday's 10-year auction produced solid metrics, but the good mood will struggle to sustain after the strong Tankan report that came earlier. The data opened the door for BOJ Governor Ueda to lean hawkish when he speaks later today at Sintra in Portugal. With a tricky 30-year debt sale still to come on Thursday, JGB traders are likely to curb their enthusiasm. — Mark Cranfield, MLIV Strategist The bid-to-cover ratio at Tuesday's auction came in slightly below the 3.66 recorded at last month's sale of the same tenor. The tail—the difference between the average and lowest-accepted prices—widened to 0.03 from 0.01 previously, indicating a modest dip in bidding strength. To help stabilise demand for Japanese government bonds, the Ministry of Finance announced adjustments to its issuance plans in June. While the amount of 10-year bonds remains unchanged, reflecting consistent investor interest, the ministry will scale back issuance of 20-, 30-, and 40-year bonds starting this month. Separately, the Bank of Japan said last month it would slow the pace of its market withdrawal beginning next year, aiming to maintain financial stability.
Zawya
27-06-2025
- Business
- Zawya
Japan's 10-year bond yield edges up ahead of auction
TOKYO - Japan's 10-year government bond yield edged up on Friday as investors awaited a government auction next week, with a lack of market-moving cues capping the move. The 10-year JGB yield rose 1 basis point (bp) to 1.425%. The Ministry of Finance will hold the auction for 10-year bonds on Tuesday. The outcome will not be as strong as a previous sale in May because the yield is lower now, said Miki Den, a senior Japan rate strategist at SMBC Nikko Securities. The market shrugged off Tokyo's inflation data in June, which slowed sharply due to temporary cuts to utility bills. "The yield could have fallen because of the weak price data, but JGB futures were sold and yields rose, " said Den. Bond yields move inversely to prices. The 10-year JGB futures fell 0.12 yen to 139.09. The two-year JGB yield inched up 0.5 bp to 0.74%. The five-year yield was flat at 0.965%. The 20-year JGB yield rose 1 bp to 2.325%. The 30-year JGB yield rose 0.5 bp to 2.9%. The 40-year JGB yield fell 1.5 bps to 3.08%. (Reporting by Junko Fujita; Editing by Janane Venkatraman)
