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PREVIEW: 30-Year Supply Due


The Japanese MOF will today sell Y900bn of 30-Year JGB's re-opening JB#71. The MOF last sold 30-Year debt on August 11, the auction drew cover of 3.071x at an average yield of 0.647%, average price of 101.31, high yield of 0.651%, low price of 101.20, with 35.9782% of bids allotted at the high yield.

  • Some desks are cautious ahead of the auction, with worries re: the potential fiscal stimulus burden in the long end a little more pronounced after incumbent PM Suga noted that he would not participate in the upcoming leadership vote within the ruling LDP Party, ceding his position come the end of his current term.
  • The carry and roll down advantage of 10s and 20s add a further impediment for anyone looking to set flatteners.
  • Still, the modest round of outright cheapening witnessed since early August will provide incremental support at today's auction.
  • Results due at 0435BST/1235JST.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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