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5-Year Supply Goes Well

JGBS

A firm round of 5-Year supply sees the low price top wider dealer expectations (which stood at 99.81, per the BBG dealer pol), while the tail vanished as the cover ratio moved away from the multi-year low that was observed at the prior 5-Year auction, topping the 6-auction average (3.37x) in the process. The recent cheapening vs. swaps and allure of new paper likely facilitated demand. No immediate reaction in futures, while cash 5s see some light richening post-supply.

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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