Investing.com – Even as Japanese government bond yields held near record lows, the auction for 10-year bonds entered negative territory for the first time ever on Tuesday, according to the country’s Ministry of Finance.
The Japanese government sold 2.2 trillion yen ($19.4 billion) of Japan 10-Year with an average yield of -0.024%. The negative yield means the Japanese government gets paid to borrow money and was the first ever in an auction of the debt.
The demand, as reflected by the bid-cover ratio, rose to 3.2 times the amount offered, compared to 3.14 at the previous auction in January.
Yields on Japan 5-Year entered negative territory at an auction in February in response to the Bank of Japan’s decision to cut announce negative interest rates on January 29.