Ahead of the BOJ decision, high yields attract active investor participation; 2-year JGB auction sees strong demand.

Zhitong Finance APP has learned that, as the market widely expects the Bank of Japan to keep interest rates unchanged when it announces its rate decision on Friday, higher yields have attracted investors to enter the market, and demand at the Japanese 2-year government bond auction was strong. It is reported that the bid-to-cover ratio for this auction was 4.03 times, the highest since June, higher than 3.89 times in the previous auction and also above the average of 3.84 times over the past 12 months. Another sign of strong investor interest is that the "tail" of this auction (i.e., the gap between the average winning price and the lowest winning price) was 0.014, unchanged from last month's auction.