Japan's 10-Year Bond Auction Hits Softest Demand Since April as Yields Hit Record 2.8%

Japan's 10-year JGB auction on July 2 drew its weakest bidding since April, sending yields to 2.8%—a record high—as investors dumped longer-dated bonds. The government plans to increase JGB issuance 28% through 2029 while the Bank of Japan shrinks its bond purchases. The central bank's exit from the market coincides with surging fiscal spending, leaving fewer institutional buyers willing to hold duration risk at current yields.