10-year bond auction smooth despite increase in amount.TOKYO, Oct. 24 Kyodo The Ministry of Finance on Tuesday Tuesday: see week. auctioned 946.12 billion yen worth of 1.9%, 10-year bonds to be issued in November November: see month. at an average price of 100.77 yen, giving them a yield of 1.809%, with the lowest price of 100.75 yen yielding 1.811%. It was the first auction of 10-year government bonds since the ministry announced earlier this month that it would increase its monthly issuance of the bonds by 200 billion to 1.6 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. yen from October October: see month. to March next year. Issuance of government bonds is expected to rise further in the next fiscal year starting April 1. Market players said the auction went more smoothly than expected and was not much affected by the increase, although there had been concern that the increase might negatively affect the auction. Bids totaled 2.27 trillion yen, bringing the bid-to-cover ratio Bid-to-Cover Ratio A ratio that compares the number of bids received in a Treasury security auction to the number of bids accepted. Notes: A ratio above 2.0 indicates a successful auction comprised of aggressive bids. to 2.4. The ratio, which represents the amount of bids to the amount auctioned, is a measure of demand. About 60% of the planned amount is issued every month at auction. The latest 10-year bonds will be issued on Nov. 20 and mature Dec. 20, 2010. |
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