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Free AccessLess Demand Seen At Liquidity Enhancement Auction For OTR 5-15.5-Year JGBs
Less demand seen at the latest liquidity enhancement auction covering off-the run 5-15.5 Year JGBs, compared to the previous auction covering these maturities (April 18). Today’s cover ratio 3.716x versus 4.760x prior.
- Spreads observed at the auction were higher than that seen last time out with the average accepted spread +0.006% versus -0.012% previously.
- As flagged in our auction preview, the richening across lines since the April 18 auction looks to have tempered demand.
- JGB futures are a little stronger along with the 5-year zone, with the 10- and 20-year JGB yields little changed post-auction.
- US tsys edging richer however could counter the auction impetus.
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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.