Japan’s Ministry of Finance will sell about 2,600 billion yen of 10 year Japanese government bonds on November 5, 2026. The issue settles on November 6 and matures on September 20, 2036, the ministry announced on Thursday.
The sale follows a well bid front end. The ministry’s two year auction on October 29, covered separately on this site, drew competitive bids of 8,539.2 billion yen against 2,118.4 billion yen accepted competitively, a cover of about four times at an average yield of 1.905 percent. Demand at two years, with the Bank of Japan expected to hold at 1.25 percent this week and a December rise to 1.50 percent the consensus expectation in the latest Reuters poll, does not settle the question the 10 year auction asks.
That question is duration appetite. The 10 year is where fiscal supply and the expected terminal rate meet, and November 5 is the first benchmark long end auction after the Bank of Japan’s October 29 to 30 meeting and its Outlook Report. A clean result would extend the front end’s calm up the curve; a tail would say investors want more yield to hold Japanese duration while the tightening cycle is unfinished.