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5- to 15.5-Year Liquidity Enhancement Auction Goes Well; Cover Jumps

JGBS

The latest liquidity enhancement auction covering off-the-run 5- to 15.5-Year JGBs saw spreads widen a little from the previous auction, while the spread tail width remained the same. The cover ratio rose to 6.39x, improving from the previous auction’s 4.90x, far above the six-auction average of 4.55x.

  • Little by way of a meaningful, lasting move has been observed in cash JGBs post-auction.

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