FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: Demand for Japan's 40-Year Government Bonds Rises on Increased Yields

By

Japan's 40-year government bonds attracted greater demand compared to its 12-month average as investors flocked to higher yields, Bloomberg News reported Wednesday.

Wednesday's sale saw the bid-to-cover ratio reaching 2.70, greater than the 2.54 at the last auction and the 2.47 average for the last 12 months, the report said.

Bond yields hit 3.84% against 3.6% in the previous sale and the highest yield estimate of 3.85% in a Bloomberg survey, according to the report.

The results point to a "solid 40-year auction" but are "by no means optimistic," amid a decline in bid amount by more than 200 billion yen against a 100 billion yen drop in the issuance amount, the report cited BNP Paribas Asset Management senior bond strategist Ryutaro Kimura as saying.

The results came despite higher oil prices due to further developments in the Middle East war, while moves for a supplementary budget without a rise in bond issuance have narrowed bond supply worries, according to the report.

The 40-year yield reached a peak of 4.355% earlier in May before dropping to about 4.095%, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Related Articles

Treasury

Osisko Development Closes US$225.0 Million Offering

Osisko Development (ODV.V), down 2.2% at last look in U.S. after-hours trading, said Tuesday it closed a private placement offering of US$225 million aggregate principal amount of 4.125% convertible senior notes due 2031.The company said net proceeds from the offering are expected to total about US$215.9 million after deducting commissions and estimated offering expenses, but before deducting the cost of capped call transactions.Osisko said the proceeds will be used to fund capped call transactions entered into with certain financial institutions in connection with the offering, as well as for the development of the Cariboo Gold Project and general corporate purposes.The company added that the initial purchasers of the notes have been granted an option to purchase up to an additional US$25 million aggregate principal amount of notes.Separately, Double Zero Capital LP, an affiliate of the company, agreed to purchase US$50 million aggregate principal amount of the notes in a concurrent private placement.Shares of the company were down US$0.06 to US$2.72 at last look in US after-hours trading, after closing C$0.01 down to C$3.84 on TSX Venture Exchange.

$ODV$ODV.V
Treasury

US Treasury Closing Levels

3:00 Tuesday vs 3:00 Friday2yr 99-14 vs 99-09; 4.047% vs 4.121%5yr 98-20 vs 98-09; 4.183% vs 4.258%10yr 99-02 vs 98-12; 4.491% vs 4.558%30yr 99-19 vs 98-31+; 5.025% vs 5.064%2/10 44.178 bps vs 43.472 bps5/30 84.160 bps vs 80.574 bps

Treasury

Manulife Financial to Issue S$500 Million Notes Offering Due 2036

Manulife Financial (MFC.TO) on Tuesday priced an offering in Singapore of S$500 million of 2.880% subordinated notes due June 4, 2036.The offering will qualify as Tier 2 capital for Manulife. The notes will bear interest at a fixed rate of 2.880% until June 4, 2031 and then at a rate of 0.931% over the five-year Singapore Overnight Rate Average Overnight Indexed Swap (SORA OIS) rate.Manulife may, with OSFI approval, redeem the notes in whole, but not in part, on June 4, 2031, a statement said.Manulife shares were last seen down $0.57 to $53.30 on the Toronto Stock Exchange.Price: $53.43, Change: $-0.43, Percent Change: -0.80%

$MFC.TO