The bond market votes with its feet! Rising interest rate expectations dampen demand for the auction of two-year Japanese government bonds. Investors' focus shifts to remarks by Bank of Japan Governor Haruhiko Kuroda.

According to the Wisdom Financial APP, due to weakened expectations of the Bank of Japan raising interest rates, investors' interest in the Japanese two-year government bond auction on Friday was lackluster. Data shows that the bid-to-cover ratio for this two-year Japanese government bond auction was 3.53 times, not only lower than the 4.35 times of the previous auction in October, but also lower than the 12-month average of 3.66 times. Another signal of weak demand is the tail difference (the difference between the average winning bid price and the lowest winning bid price) reaching 0.012, compared to 0.002 in the previous auction in October. As a result of this news, the yield on the Japanese two-year government bond fell slightly, rising to 0.977%, reaching the highest level since 2008.