Free Trial

AUCTION: 30-Year JGB Supply Due

JGBS AUCTION

The Japanese MOF will today sell Y900bn of 30-Year JGB's re-opening JB#70. The MOF last sold 30-Year debt on May 13, the auction drew cover of 3.117x at an average yield of 0.645%, average price of 101.36, high yield of 0.649%, low price of 101.25, with 67.9449% of bids allotted at the high yield.

  • Today's auction comes in the wake of last week's less than inspiring round of 10-Year supply.
  • 30s have been on a steady cheapening path since late April, but still sit ~7.5bp shy of their YtD cheaps.
  • The 5-/30-Year yield spread sits ~5.0bp or so off the recent steeps, while the 20/-30/40-Year butterfly sits within a handful of bp of the '21 wides, which may lead to some using the auction to enter relative value plays.
  • 30-Year swap spreads sit around the middle of their YtD range and operate comfortably off of their '20 tights.
  • A less attractive carry & roll profile than both 10s and 20s may limit broader takedown at today's auction. While worries surrounding the potential announcement of a supplementary budget later in '21 may also prove to be a deterrent.
  • Results due at 0435BST/1235JST.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.