Japan sells JPY 2.5tln 5yr JGBs; b/c 3.08x (prev. 3.17x), average yield 1.63% (prev. 1.435%); demand weaker than 12-month average

• Lowest accepted price  99.77 (prev. 99.80)
• Weighted average price  99.82 (prev. 99.84)
• Tail in price  0.05 (prev. 0.04)

The recent auction of 5-year Japanese Government Bonds showed weaker demand, as evidenced by a drop in the bid-to-cover ratio compared to previous auctions. With the average yield rising significantly, this may indicate shifting sentiment in the fixed-income market, potentially affecting bond prices and the overall risk sentiment in the region.