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10-Year JGB Supply Goes Well

JGBS

The latest 10-Year JGB auction went well, as the low price matched wider expectations (proxied by the BBG dealer poll), while the price tail narrowed at the margin and cover ratio held strong, printing just below the 5-month high witnessed at October’s 10-Year auction. We would suggest that short covering and outright plays based on the BoJ’s YCC mechanism being successfully defended were the key drivers of demand at today’s auction (we highlighted these factors in our preview, although we suggested that relative value headwinds may cap demand).

  • JGB futures and cash 10s saw modest bids post-auction results.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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