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5-15.5 Year Liquidity Enhancement Auction Goes Well Enough

JGBS

The latest liquidity enhancement auction covering off-the-run 5-15.5 Year JGBs saw spreads experience incremental widening vs. the previous offering, with the spread tail width remaining narrow. The cover ratio came in at 3.629x, little changed from the previous print of 3.66x, but still firmly below the six-auction average of 4.43x.

  • A less urgent need for foreign investors to cover any JGB shorts perhaps limited demand at the auction.

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