Local governments have failed to sell out bonds at several recent offerings, marking a shift in what has traditionally been a stable market, said people familiar with the matter.

This month’s heightened market volatility, driven by U.S. tariff policies and uncertainty over a potential Bank of Japan rate hike, have also led to delays and cancellations of several Japanese corporate bond offerings.

Unsold bonds are also being covertly peddled at discounted prices, according to several market participants, including investors, who spoke on condition of anonymity as the information is not public.