Japanese Municipal Bond Deals Fail to Sell Amid Rate Swings

Japan’s 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 US 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. The volume of deals priced this month to date at about 470 billion yen, makes it the quietest April since 2022.