Japan sells JPY 299.9bln in 5yr Climate Transition Bonds b/c 3.49 (prev. 3.98), price at highest accepted yield 99.61 (prev. 99.53), highest accepted yield 1.684% (prev. 1.098%)

• Allotment for Bids at the Highest Accepted Yield 24.2857% (prev. 35.6363%)

The recent auction of Japan's 5-year Climate Transition Bonds saw a notable drop in the highest accepted yield, suggesting weaker demand as indicated by the reduced allotment for bids. This decrease in yield may reflect a shifting investor sentiment or heightened demand for green bonds, but the lower bid-to-cover ratio highlights a potential hesitation in the market regarding these securities. Overall, this could signal a more cautious approach from investors towards fixed-income assets in Japan, which may impact future bond issuance strategies.