MNI BRIEF: Fed's Bostic Says Bumpy Inflation Calls For Caution

CANADA NOV TRADE BALANCE -CAD323 MLN VS PRIOR -CAD544 MLN

MNI BRIEF: NGEU Potential Growth Lift Less Than Expected -ECB

MNI China Daily Summary: Tuesday, January 7

MNI China Press Digest Jan 7: CPI, New Loans, Local Bonds

MNI: PBOC Net Drains CNY150.6 Bln via OMO Tuesday

EZ/UK Bond Supply Calendar: IT Syndication; UK, DE Due Wed

EZ/UK Bond Supply Calendar: IT Syndication; UK, DE Due Wed

EZ/UK T-Bill Calendar: 3/6/12-Month EU-Bills Auction Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

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

JGBS AUCTION
BulletAPACFixed Income BulletsJapanMarkets

The 2-year bond auction displayed mixed demand metrics today. The low price surpassed dealer expectations, which had been set at 100.025 according to a Bloomberg poll. However, the cover ratio declined to 3.6296x from 4.8738x and the auction tail lengthened versus the previous month.

  • The auction took place with the 2-year yield standing at its highest level since 2008 and 10–15bps above last month’s auction levels.
  • The 2/5 yield curve was slightly steeper, while the 2/10 curve had flattened slightly compared to the previous month.
  • The auction did occur after today’s Tokyo CPI print, a leading indicator of the national average, which showed an acceleration across all measures.
  • Currently, OIS pricing sits 6–19bps firmer across meetings versus pre-BOJ MPM (Oct), with September 2025 leading the gains.
  • Today’s auction results contrast with the strong demand metrics observed in the 5-year auction earlier this month.
  • Following the auction, the cash 2-year yield has remained largely stable in post-auction trading. 
153 words

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.

The 2-year bond auction displayed mixed demand metrics today. The low price surpassed dealer expectations, which had been set at 100.025 according to a Bloomberg poll. However, the cover ratio declined to 3.6296x from 4.8738x and the auction tail lengthened versus the previous month.

  • The auction took place with the 2-year yield standing at its highest level since 2008 and 10–15bps above last month’s auction levels.
  • The 2/5 yield curve was slightly steeper, while the 2/10 curve had flattened slightly compared to the previous month.
  • The auction did occur after today’s Tokyo CPI print, a leading indicator of the national average, which showed an acceleration across all measures.
  • Currently, OIS pricing sits 6–19bps firmer across meetings versus pre-BOJ MPM (Oct), with September 2025 leading the gains.
  • Today’s auction results contrast with the strong demand metrics observed in the 5-year auction earlier this month.
  • Following the auction, the cash 2-year yield has remained largely stable in post-auction trading.