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PREVIEW: 20-Year Supply Due

JGBS AUCTION

The Japanese MOF will today sell Y1.2tn of 20-Year JGBs re-opening JB#179. The MOF last sold 20-Year debt on February 17, the auction drew cover of 3.391x at an average yield of 0.736%, average price of 95.91, high yield of 0.739%, low price of 95.85, with 67.1546% of bids allotted at the high yield.

  • Continued uncertainty surrounding the Russia-Ukraine conflict has seen the space move back from recent multi-year cheaps, although most of the cheapening has been consolidated, leaving 20s towards the cheaper end of the recently observed range. Still heightened volatility may dissuade some from initiating outright longs.
  • 20s sit near the cheaper end of the recent range on the 10-/20-/30-Year fly, which may entice some, with carry advantages over 30s more than offsetting the more favourable carry that 10s provide.
  • 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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