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JGBS AUCTION: 5-Year Supply Shows Strong Demand Metrics

JGBS AUCTION

Today’s 5-year bond auction demonstrated robust demand, with the auction price surpassing dealer expectations and exceeding the Bloomberg poll projection of 99.81. The cover ratio rose significantly to 4.4177x from 3.8070x, while the auction tail narrowed slightly compared to last month.

  • The strong results sharply contrasted with the weaker demand seen in this month’s 10-year bond auction.
  • ids were likely bolstered by the offering’s outright yield at a cyclical peak.
  • The 5-year JGB has richened by approximately 1bp in early afternoon trading, with JGB futures strengthening and recovering from session lows.

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