JGB futures plumb new depths following the.....>

JGBS: JGB futures plumb new depths following the weak 10-Year auction, at 3.70x

the coverage ratio was the weakest since the auction on June 1, previous sale

was 4.55x and 2017 average is 3.98x.

- The tail widened to 0.05 compared to stopping on the screws at the previous

auction, low price at 100.35 fell below expectations of 100.40.

- Sources noted that buyers cropped up at yields above the 0.050% level there

was short covering demand from dealers but this was not enough to prop up the

auction and likely deterred capital gain buyers.

- As a note, although a total of Y2.46tln 5-10 Year JGB's are expected to be

purchased over December, there are only 2 purchase ops in the first half of

December, the earliest this issue could be purchased by the BoJ is December 18.