Core Insights - The U.S. Treasury conducted auctions for both four-week and eight-week Treasury bills, with the four-week bill yielding a rate of 4.080% and the eight-week bill yielding a rate of 4% [1] Summary by Category Auction Results - The four-week Treasury bill auction had a bid-to-cover ratio of 2.61, indicating strong demand [1] - The eight-week Treasury bill auction had a bid-to-cover ratio of 2.65, also reflecting robust interest from investors [1]

Core Insights - The total amount allocated for the bond series RIKB 42 0217 is 1,643 million [1] - The settlement date for this bond is set for September 24, 2025 [1] Bid Summary - A total of 17 bids were received, amounting to 3,243 million [1] - Out of these, 9 bids were successful, with all being allocated in full [1] - The bid to cover ratio stands at 1.97, indicating strong demand [1] Pricing and Yield - The awarded bids were at a price of 78.600 with a yield of 6.680 [1] - The weighted average of successful bids is 78.769 with a yield of 6.660 [1] - The best bid was at a price of 79.471 with a yield of 6.580, while the worst bid was at 78.400 with a yield of 6.710 [1] Allocation Details - The lowest price and highest yield allocated were 78.600 and 6.680 respectively [1] - The highest price and lowest yield allocated were 79.471 and 6.580 respectively [1] - Approximately 100% of the bids received were allocated partially [1]

Group 1 - The auction of 20-year U.S. Treasury bonds showed robust demand, with the direct bidder allocation ratio reaching a historical high and the allocation to primary dealers at one of the lowest levels in history [1] - The awarded yield for the 20-year bonds was 4.613%, significantly lower than the previous month, marking the lowest since October 2024 [1] - The bid-to-cover ratio was 2.74, higher than in July and the second highest since March, indicating strong actual demand [1] Group 2 - The average fixed-rate mortgage loan rate for 30-year terms dropped significantly by 12 basis points to 6.13%, the lowest since the end of 2022 [1] - Historical trends suggest that in a recessionary environment, rate cuts may lower long-term yields, while in a non-recessionary environment, the impact on long-term rates may be minimal [1] - There is a possibility that the market may react by "buying the rumor, selling the fact," leading to a slight sell-off of 10-year Treasuries after the Federal Reserve announces a rate cut [1]

Group 1 - The Government Debt Management will auction Treasury bonds with specific ISIN numbers and maturity dates on September 5, 2025 [1] - The auction will allow for a 10% additional purchase right as per Article 6 of the General Terms of Auction for Treasury bonds [1] - The Treasury bonds will be delivered in electronic form on the settlement date of September 10, 2025 [1] Group 2 - Payment for the bonds can be made either in cash or using the buyback issue at the specified buyback price [2] - Cash payments must be received by the Central Bank before 14:00 on the settlement date, while notifications for buyback payments must be received by 14:00 on the auction date [2] - The value of the buyback bond is determined by the buyback price plus accrued interest and indexation [2] Group 3 - No fee is associated with the purchase of the RIKS 26 0216 bond [3] - Further details can be obtained from the Government Debt Management contact [3]

Group 1 - The Bank of Japan (BOJ) maintains a neutral stance despite market speculation about potential interest rate hikes as early as October, leading to a rise in long-term bond yields and a weak demand for short-term bond auctions [2][3] - BOJ committee member Junko Nakagawa emphasized that the central bank will continue to raise policy rates if economic and inflation conditions allow, while also highlighting trade-related uncertainties [3] - The yield on Japan's 10-year government bonds reached a 17-year high earlier this week, driven by stable economic activity and persistent inflation, further fueling speculation about interest rate hikes [3] Group 2 - The auction demand for Japan's two-year government bonds fell to its weakest level in 16 years, with an average bid-to-cover ratio of 2.84, the lowest since 2009 [4] - The weak auction results are attributed to speculation about BOJ interest rate hikes and expectations of increased short-term bond issuance, making it difficult for investors to establish positions at the short end of the curve [4] - Overall, the poor auction results across various maturities indicate weakening market demand amid improved economic prospects and hawkish signals from the BOJ [4]

Core Viewpoint - The recent U.S. Treasury bond auctions have shown weak results, particularly the 30-year bond auction, indicating a decline in demand for government debt [1] Group 1: Auction Results - The yield on the 30-year bond auction exceeded the pre-issue yield, marking the largest tail risk spread in a year, which suggests weak demand [1] - The bid-to-cover ratio for the 30-year bond auction was 2.27, the lowest since November 2023, and significantly below the average of the last six auctions [1] - The indirect bid ratio, which reflects foreign demand, fell to 59.5%, the lowest since May and the second lowest since 2021 [1] Group 2: Domestic Demand - The direct bid ratio, indicating domestic demand, dropped to 23.03%, lower than both the previous month and the average of the last six auctions [1] - The allocation to primary dealers reached the highest level since August 2024, highlighting insufficient actual demand [1]

Core Viewpoint - The recent 30-year U.S. Treasury bond auction revealed weak market demand, raising concerns about the overall interest in U.S. debt securities [1][2] Group 1: Auction Results - The U.S. Treasury issued $25 billion in long-term bonds with a winning yield of 4.813%, exceeding pre-auction market yields by over 2 basis points, indicating investors' demand for higher returns [1] - Following the auction results, the 30-year Treasury yield rose to 4.829%, reflecting investor disappointment and a decline in bond prices [1] - This marks the third consecutive weak auction this week, following lackluster demand in the 3-year and 10-year bond auctions [1] Group 2: Investor Participation - Primary dealers, seen as market "backstop buyers," subscribed to 17.5% of the issuance, the highest since August 2024, indicating they are taking on more of the subscription when other investors show less interest [2] - Indirect bidders, including foreign central banks, accounted for 59.5% of the auction, below the average of over 61% from the past three auctions [2] - Direct bidders, such as domestic pension funds, subscribed to 23%, slightly below recent averages [2] Group 3: Market Sentiment - The limited interest in the 30-year Treasury bonds is not surprising, as previous auctions in February, March, and May also faced weak demand due to the higher interest rate risk associated with long maturities [2] - The overall trend of weak demand across different maturities suggests that investors are dissatisfied with current Treasury yields, believing that fair value should be higher [2] - This situation poses challenges for the new administration, which is more focused on controlling federal borrowing costs, as weak demand may force the Treasury to issue bonds at higher rates, increasing government debt interest burdens [2]

Core Points - The U.S. Treasury auctioned four-week and eight-week Treasury bills with notable results in yield and bid-to-cover ratios [1] Group 1: Four-Week Treasury Bill Auction - The awarded yield for the four-week Treasury bill was 4.3%, an increase from 4.290% on July 31 [1] - The bid-to-cover ratio for the four-week bill was 2.82, up from the previous ratio of 2.63, indicating stronger demand [1] Group 2: Eight-Week Treasury Bill Auction - The awarded yield for the eight-week Treasury bill was 4.235%, a decrease from the previous yield of 4.290% [1] - The bid-to-cover ratio for the eight-week bill was 3.16, an increase from the prior ratio of 2.52, suggesting improved investor interest [1]

Core Points - The U.S. Treasury auctioned four-year and eight-year government bonds with a winning yield of 4.290% for both maturities, reflecting an increase from the previous auction yields of 4.245% and 4.265% respectively [1] - The bid-to-cover ratio for the four-year bonds was 2.63, slightly down from the previous ratio of 2.69, while the eight-year bonds had a bid-to-cover ratio of 2.52, also lower than the prior 2.63 [1]

Core Insights - The U.S. Treasury auctioned four-month Treasury bills with a winning yield of 4.210%, a slight decrease from the previous auction yield of 4.225% on July 23 [1] - The bid-to-cover ratio for this auction was 3.45, which is lower than the previous auction's ratio of 3.55, indicating a decrease in demand [1] Summary by Category - **Auction Results** - Winning yield for four-month Treasury bills was 4.210% [1] - Previous auction yield was 4.225% [1] - **Demand Indicators** - Bid-to-cover ratio was 3.45 [1] - Previous bid-to-cover ratio was 3.55 [1]