A Japanese government bond rally ground to a halt Tuesday after the Finance Ministry lowered the coupon rate for 10-year bonds to an all-time low of 0.8 percent.
Some analysts said, however, that the market is probably just taking a breather. They claimed that, although investors are wary of bonds' high prices, a dearth of attractive investment options will lure them back to the market.
The ministry sold 1.33 trillion yen worth of 0.8 percent, 10-year bonds at Tuesday's auction. Bids totaled a mere 3.01 trillion yen, putting the bid-to-cover ratio, a gauge of demand, at some 2.3.