Japan sells JPY 2.15tln in 2-year JGBs; b/c 3.32x (prev. 3.88x); average yield 1.244% (prev. 1.253%)

• Lowest accepted price 100.095 vs. prev. 100.080
• Weighted average price 100.108 vs prev. 100.090
• Tail in price 0.013 vs prev. 0.010

The auction results show a decrease in demand for 2-year JGBs, with a bid-to-cover ratio falling from 3.88x to 3.32x. While the average yield is slightly lower, the tail in pricing indicates some weakness in the auction, which may signal shifting sentiment towards Japanese sovereign debt and could impact interest rate expectations moving forward.