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Lacklustre Liquidity Enhancement Auction

JGBS

A mediocre liquidity enhancement auction covering off-the-run 1-5 Year JGBs saw spreads widen from the previous auction, while the spread tail remained constant. The cover ratio came in at 3.15x, below the previous auction’s 3.47x, and far below the six-auction average of 4.38x.

  • Little by way of a meaningful reaction has been observed in 2- to 5-Year JGBs post-supply.

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