According to The Kobeissi Letter, demand for Japanese government 10-year bonds was weak at Tuesday’s auction, with the bid-to-cover ratio at 3.02, below last month’s 3.30 and the 12-month average of 3.24. According to The Kobeissi Letter, the bid-to-cover is a gauge of demand strength, and the decline reflects rising investor reluctance toward JGBs.

According to @KobeissiLetter, Japanese insurers sold about 5.2 billion dollars of Japanese government bonds with maturities of ten years or longer in December, the largest monthly sale since data began in 2004. According to @KobeissiLetter, this was the fifth consecutive month of net selling by insurers, the longest streak on record. According to @KobeissiLetter, the update highlights a record-length selling trend focused on long duration JGBs.

According to @business, Japan’s stock market is likely to receive support after pro-stimulus Sanae Takaichi won the ruling party leadership, while the yen and long-term Japanese government bonds are expected to come under pressure, indicating equity-positive and FX/bond-negative bias for near-term trades. Source: Bloomberg via @business, Oct 5, 2025.