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Mixed 10-Year JGBi Supply

JGBS

The price component of the latest round of 10-Year JGBi supply was comfortably firmer than expected, with the low price sitting at 107.35 (vs. the BBG dealer survey of 106.90). although the cover ratio softened to 3.323x, below the 6-auction average of 3.48x. The pricing suggests there was decent enough demand for inflation protection given the current well-documented global inflationary picture, with some participants willing to pay up for such protection, although the limited nature of the spill over into Japanese prices likely tempered wider demand, limiting the cover ratio. Breakevens are flat after the Tokyo lunchbreak, after pulling back from multi-month narrows during the Tokyo morning.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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