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PREVIEW: 2-Year JGB Supply Due

JGBS AUCTION

The Japanese MOF will today sell Y2.9tn of 2-Year JGBs opening JB#445. The MOF last sold 2-Year debt on 27 December, the auction drew cover of 3.779x at an average yield of 0.043%, average price of 99.924, high yield of 0.055%, low price of 99.900, with 11.0582% of bids allotted at the high yield.

  • The near-positive yield environment and the BoJ’s efforts to backstop its existing YCC settings should provide a least a baseline level of demand at today’s auction, facilitating smooth takedown, although continued uncertainty re: the outlook for BoJ policy will likely cap demand.
  • 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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