Investors snub Japanese bonds
Jane Padgham12 April 2012
ONE of the world's key financial markets has been shunned by investors as Japanese government bonds failed to find buyers for the first time.
An auction of 10-year JGBs was undersubscribed as bidders kept to the sidelines, waiting for clear signs of how Japan's economic mess will be sorted out. Only 1.2 trillion yen (£6.3bn) of the 1.8 trillion yen bonds were snapped up. Financial institutions were forced to buy the remainder.
Economist Tomoko Fujii at Morgan Stanley said: 'The government might come up with a miracle plan, but they are likely to disappoint. Unless they show a clear direction, it is not a good time to buy JGBs.'
