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PREVIEW: 30-Year JGB Supply Due

JGBS AUCTION

The Japanese MOF will today sell Y900bn of 30-Year JGB's re-opening JB#72. The MOF last sold 30-Year debt on October 12, the auction drew cover of 2.904x at an average yield of 0.702%, average price of 99.94, high yield of 0.706%, low price of 99.85, with 32.0181% of bids allotted at the high yield.

  • Outright 30-Year yield levels hold a little shy of 0.70% ahead of the auction, although the recent bond market stabilisation should provide a deeper bidding pool this time around.
  • Elsewhere, the combination of the recent steepening from multi-month flats in the likes of the 5-/30-Year and 10-/30-Year yield spreads and expressed interest in lifting super-long JGB exposure on the part of life insurers should facilitate relatively smooth takedown at today's auction.
  • 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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