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PREVIEW: 2-Year JGB Supply Due

JGBS AUCTION

The Japanese MOF will today sell Y3.0tn of 2-Year JGB's opening JB#428. The MOF last sold 2-Year debt on July 29, the auction drew cover of 4.185x at an average yield of -0.126%, average price of 100.263, high yield of -0.122%, low price of 100.255, with 3.3441% of bids allotted at the high yield.

  • The lower volatility environment that JGBs provide vs. their international counterparts and FX-hedged yield environment may offer support for the auction, negating the potential lack of strong outright domestic demand, with 2-Year yields continuing to operate around the richer end of the recently observed range.
  • Desks aren't showing much in the way of relative value interest at present.
  • Results due at 0435BST/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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