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Cover Crumbles At 20-Year Auction, Pricing Metrics Smooth Enough

JGBS

The cover ratio crumbled at the latest round of 20-Year JGB supply, printing below 3.00x to hit the lowest level observed at a 20-Year JGB auction since the multi-year low observed back in October. Things were smooth enough on the pricing side, the price tail saw a modest widening, while the low price topped broader dealer expectations (BBG dealer median looked for a low price of 97.35). Market volatility continues to limit demand when it comes to JGB auctions. Not much was observed in the way of meaningful reaction in JGB futures or cash 20s post-auction.

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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