Free Trial

PREVIEW: 10-Year JGB Supply Due

JGBS AUCTION

The Japanese MOF will today sell Y2.6tn of 10-Year JGB's opening JB#365. The MOF last sold 10-Year debt on December 2, the auction drew cover of 3.164x at an average yield of 0.060%, average price of 100.38, high yield of 0.063%, low price of 100.36, with 63.0466% of bids allotted at the high yield.

  • 10-Year JGBs have cheapened in recent weeks, with 10-Year yields tapping the highest level witnessed since early November in the process. The offshore bond dynamic has been in the driving seat.
  • This (limited) cheapening, coupled with the most attractive carry & roll proposition on the JGB curve should result in at least a modest level of demand at today’s auction.
  • 10s have moved away from ‘21’s richest levels, when viewed on the 5-/10-/20-Year butterfly, but are by no means attractive on that structure.
  • Results due at 0335GMT/1235JST.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

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.