30-Year JGB Supply Sees Tepid Demand

30-Year JGB supply sees the cover ratio print around the 3.00x mark, with the low price seeing a miss vs. wider expectations (which stood at 103.70, per the BBG dealer poll), pointing to somewhat tepid demand. The positives that we flagged pre-auction (seasonal demand from life insurers, less worry re: a policy shift from the BoJ when it convenes later this week and the recent stabilisation in the super-long end of the curve) were largely neutralised by the relative richness of the sector, recent flattening of the broader curve and lingering worry re: BoJ policy tweaks in the next FY. This ultimately resulted in tepid demand, with the cover ratio pushing back below the 6-auction average (3.146x) on the back of tepid demand. JGB futures have ticked higher in the afternoon, although that was likely on the back of momentum from the morning session and a broader bid in core global FI markets post-RBA, while cash 30-Year yields are ~0.5bp higher vs. pre-auction levels.