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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#446. The MOF last sold 2-Year debt on 31 January 2023, the auction drew cover of 3.727x at an average yield of -0.009%, average price of 100.029, high yield of -0.007%, low price of 100.025, with 88.9171% of bids allotted at the high yield.

  • Some desks are a little tentative ahead of supply, with a particularly focus on still negative yield levels and the width of swap spreads, although there should be enough latent demand ahead of the end of the Japanese FY to generate at least passable takedown of the auction in our view.
  • 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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