Japanese major financial institutions were net sellers of roughly JPY 2.59 trillion, or about $17.3 billion, in overseas long-term bonds during the two weeks from Sept. 13 to Sept. 26, according to a CryptoSlate report cited by Techub News. Over the same period, Japan’s Oct. 6 auction of 10-year government bonds showed a higher average yield of 3.101%, up from 2.995% in early September. Demand also strengthened, with the bid-to-cover ratio rising from 3.29 to 3.76. CryptoSlate said the combination could matter beyond Japan. If domestic institutions keep cutting exposure to foreign bonds and shift funds into higher-yielding Japanese government debt, global funding costs could rise. The report added that such a move may tighten liquidity conditions for risk assets including Bitcoin. The item was also attributed to Wu Blockchain in the source text.
Japanese major financial institutions were net sellers of about JPY 2.59 trillion, or roughly $17.3 billion, in overseas long-term bonds over two straight weeks from Sept. 13 to Sept. 26, according to a CryptoSlate report cited by Techub News.
10-year JGB auction showed higher yield and stronger demand
During the same period, Japan’s Oct. 6 auction of 10-year government bonds posted an average yield of 3.101%, above 2.995% in early September.
The bid-to-cover ratio also climbed to 3.76 from 3.29, indicating that demand remained firm even as yields moved higher.
What the report said about market impact
CryptoSlate said that if Japanese institutions continue to reduce allocations to overseas bonds and rotate into domestic government debt with rising yields, global funding costs could move higher.
The report added that such a shift may create liquidity pressure for risk assets including Bitcoin.
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