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JGBS AUCTION: Mixed Result For Today’s 2Y Supply

JGBS AUCTION
GlobalBulletAPACFixed Income BulletsJapanRegionMarkets

The 2-year bond supply has demonstrated mixed demand metrics today, as the low price met dealer expectations, which had been projected at 100.005, as per the BBG poll, but the cover ratio decreased to 3.8149x from 5.542x in August. The auction tail was also longer than last month.

  • Despite today's auction occurring at a similar outright yield to late August’s level, the bid at today’s auction was significantly weaker than last month.
  • It’s important to highlight that shorter-dated JGB yields have risen today, following Ishiba’s unexpected victory in the LDP leadership run-off against Takaichi, a noted BoJ dove.
  • Additionally, today's result stands in contrast to the strong demand metrics seen at this month's 5-year auction.
  • The cash 2-year yield is little changed in post-auction trade. 
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The 2-year bond supply has demonstrated mixed demand metrics today, as the low price met dealer expectations, which had been projected at 100.005, as per the BBG poll, but the cover ratio decreased to 3.8149x from 5.542x in August. The auction tail was also longer than last month.

  • Despite today's auction occurring at a similar outright yield to late August’s level, the bid at today’s auction was significantly weaker than last month.
  • It’s important to highlight that shorter-dated JGB yields have risen today, following Ishiba’s unexpected victory in the LDP leadership run-off against Takaichi, a noted BoJ dove.
  • Additionally, today's result stands in contrast to the strong demand metrics seen at this month's 5-year auction.
  • The cash 2-year yield is little changed in post-auction trade.