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PREVIEW: 10-Year JGBi Supply Due

JGBS AUCTION

The Japanese MOF will today sell Y250bn of 10-Year JGBis opening re-opening JB#27. The MOF last sold 10-Year inflation-indexed debt on August 4, the auction drew cover of 3.3228x at a high yield of -0.708%, low price of 107.35, with 54.0000% of bids allotted at the high yield.

  • Expect solid demand at today’s auction given the BoJ’s focus on facilitating demand-pull inflation dynamics via the attempted fostering of more meaningful wage growth via its ultra-loose policy settings and forward guidance combination, which it has continued to protect, via both words and actions, in recent months.
  • 10-Year breakevens deal comfortably shy of their mid-June peak, printing just below 0.90%, which should, when coupled with the above dynamics, reinforce solid demand at today’s auction.
  • 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

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