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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 November 7 2022, the auction drew cover of 3.283x at a high yield of -0.733%, low price of 107.40, with 78.1818% of bids allotted at the high yield.

  • 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, coupled with the recent shunt higher in inflation prints, should facilitate smooth takedown.
  • 10-Year breakevens deal comfortably shy of their mid-June peak and operate closer to the base of the multi-month range after trading just over 60bp shy of their cycle peak in January as speculation re: a further BoJ YCC tweak took hold. This should further underscore 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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