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Passable 20-Year Auction

JGBS

A solid enough, albeit unimpressive, round of 20-Year JGB supply saw a fairly steady cover ratio, narrower tail vs. prev. auction and a low price that comfortably topped broader dealer exp. (proxied by the BBG dealer survey). The super-long end has firmed a little in the wake of the auction, with the matters flagged in our auction preview (limited relative value appeal, attractive offshore bond yields and a lack of impending BoJ purchases covering the zone) limiting overall demand.

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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