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Less 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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