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Bond news gathered from trusted sources: new issues, redemptions, calls, defaults and price and yield moves

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The Manila TimesThe Manila Times
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​SoftBank completes $30B OpenAI investment

Bonds

SOFTBANK Group said on Thursday it has completed its $30-billion investment in OpenAI as part of its commitment to the ChatGPT maker’s last fundraising round. Earlier this year, OpenAI had secured $122 billion in commitments that valued the Sam Altman-led company at $852 billion. Amazon, Nvidia and SoftBank had anchored the fundraising. The Japanese investment conglomerate, led by founder Masayoshi Son, previously agreed to invest the capital through three tranches of $10 billion each through its Vision Fund 2. SoftBank raised $11.1 billion last month in the largest high-yield corporate bond sale globally to fund its mammoth bet on OpenAI. The funding follows a 1-trillion-yen ($6.3-billion) bond issue aimed at retail investors in September, and is likely to prompt further scrutiny of SoftBank’s finances, which could become vulnerable should market sentiment toward OpenAI and the artificial intelligence (AI) sector weaken significantly. It has become one of the world’s biggest backers of OpenAI under founder Son’s push to make the Japanese conglomerate a dominant investor in AI.

2 days ago
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InvezzInvezz
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SoftBank jumped 4% then crashed nearly 6%: what changed in just 24 hours?

Bonds

SoftBank stock reversed sharply on Friday, wiping out the previous session’s gain as investors shifted from celebrating its expanding OpenAI stake to questioning the cost and concentration behind that bet. The stock closed Thursday at ¥6,701, up 4.21%, before falling to about ¥6,324 on Friday, down 5.63%. The broader Nikkei was also weaker, so the entire decline cannot be pinned on SoftBank alone. Friday's broader market decline also reflected higher oil prices and renewed bond volatility. But the timing matters, as SoftBank had just completed the final $10 billion tranche of its latest OpenAI investment, lifting cumulative investment to $64.6 billion and ownership to roughly 13%. Thursday celebrated OpenAI while Friday counted the cost SoftBank’s October 1 announcement confirmed completion…

2 days ago
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Business RecorderBusiness Recorder
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Japan bond yields hold near multi-decade highs before 40-year auction

BondsInflation

TOKYO: Japanese government bond (JGB) yields held near multi-decade highs on Tuesday as inflation pressures set the scene for an auction of the market’s longest-dated tenor. Here are a few details: The benchmark 10-year JGB yield rose 0.5 basis point (bp) to 3.090%, near the 30-year high of 3.115% touched last week. Yields move inversely to bond prices. Global bond markets remained under pressure as US Treasury yields climbed to multi-year highs, driven by inflation fears linked to surging oil prices and expectations of further Federal Reserve rate hikes. Japan’s Ministry of Finance will sell about 300 billion yen ($1.91 billion) of 40-year JGBs later in the session, followed by an auction of 2-year notes on Wednesday. “Yields on newly issued 40-year bonds are near record highs, and with these high yields, some demand is expected from life and non-life insurance companies, as well as foreign investors,” Takayuki Miyajima, senior economist at Sony Financial Group, said in a note. “On the other hand, speculation about additional rate hikes by the Bank of Japan, expectations of a rising terminal rate, and concerns over fiscal expansion continue to weigh on the market,” he said.

5 days ago
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Business RecorderBusiness Recorder
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Japanese government bonds slide on inflation signs, BOJ rate-hike bets

BondsInterest RatesInflation

TOKYO: Japanese government bonds (JGBs) fell on Monday, driving yields back towards multi-decade highs, as inflation concerns and expectations for further central bank tightening spurred selling. Here are a few details: The benchmark 10-year JGB yield climbed 2 basis points (bps) to 3.095%, poised for its highest close since August 1996. Yields move inversely to bond prices. The 2-year yield, the one most sensitive to Bank of Japan policy rates, advanced 1.5 bps to 1.950%, matching a 31-year peak seen last week. A key gauge of Japan’s service-sector inflation rose in August at the fastest annual pace in more than two years, data showed, highlighting price pressures that may justify more interest rate increases. “Given that major developed economies share factors that fuel inflation, such as fiscal expansion and high commodity prices, it’s possible that expectations will grow that the Bank of Japan will eventually be required to tighten monetary policy as well,” Ataru Okumura, a senior rate strategist at SMBC Nikko Securities, said in a note.

6 days ago
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