Japanese two-year government bond issuance sees strong demand due to high yields.

Wednesday's auction of two-year Japanese government bonds drew stronger demand than the 12-month average, with high yields supporting buying. The bid-to-cover ratio for the sale was 3.89, up from 2.97 in the previous sale and above the 12-month average of 3.75. Strong demand was also reflected in the following: the tailthe spread between the average price and the lowest accepted pricewas 0.014, narrower than last month's 0.034. Bond futures pared losses after the results were released.