The Ministry of Finance of Japan has recently witnessed a notable decline in demand for its two-year government bond auction, with the bid-to-cover ratio plummeting to 2.84—the lowest point observed since September 2009. This decrease is attributed to investors' anticipation of an upcoming interest rate hike by the Bank of Japan, which has significantly dampened their willingness to purchase bonds. Consequently, the disparity between the average auction price and the minimum accepted price has widened to 0.022 yen.
