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PREVIEW: 15.5- To 39-Year Liquidity Enhancement Auction Due

JGBS AUCTION

The Japanese Ministry of Finance (MOF) will today sell Y500bn of JGBs with 15.5-39 Years until maturity in a liquidity enhancement auction. JB#1-13, #27-72 & #162-178 will be on offer.

  • The previous enhanced liquidity auction covering these maturities was held on December 23. The auction saw Y499.3bn issued and was covered 2.076x at an average spread of 0.000%, and a high spread of +0.004%, with 23.8095% of the bids allotted at the high spread.
  • #JB177 accounted for ~Y95bn of the takedown at the previous auction, that represented the largest takedown in individual line terms. Meanwhile, JB#35-37 accounted for a cumulative ~Y115bn of the takedown. JB#13 accounted for ~Y72bn of the takedown.
  • A reminder that a couple of this week’s Tokyo trading sessions have seen footprints of Japanese lifer demand in the super-long end of the curve. This could show up in today’s auction, supporting demand, given the recent cheapening in that zone of the curve and pre-disclosed investment intentions on the part of domestic life insurers.
  • 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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