The Japanese MOF will today sell Y2.8tn of 2-Year JGBs opening JB#437. The MOF last sold 2-Year debt on April 27, the auction drew cover of 4.340x at an average yield of -0.054%, average price of 100.118, high yield of -0.050%, low price of 100.110, with 4.8301% of bids allotted at the high yield.
- 2s are back from cycle cheaps seen earlier in the year and the steep domestic curve may inhibit wider demand at today’s auction. Still, the auction should pass smoothly, as has generally been the case with 2s in recent times, with a base line level of domestic demand expected to get the auction over the line when it comes to smooth digestion.
- Results due at 0435BST/1235JST.