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Mediocre 5-Year Supply

JGBS

The latest round of 5-Year JGB supply received lukewarm demand, with the low price missing wider dealer expectations (which stood at 100.050, per the BBG dealer poll). The price tail remained narrow (having widened a little from a tail of zero at the previous auction), while the cover ratio eased to 3.40x from the previous auction’s 3.92x, coming in a little below the six-auction average of 3.46x.

  • As flagged in our preview, the lack of meaningful outright and relative value for 5s likely contributed to reduced demand at today’s auction.

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