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PREVIEW: JGBi Supply Due

JGBS AUCTION

The Japanese MOF will today sell Y200bn of 10-Year JGBis opening JB#26. The MOF last sold 10-Year inflation linked debt on February 8, the auction drew cover of 3.070x at a high yield of -0.121%, low price of 102.95, with 51.0638% of bids allotted at the high yield.

  • Although there is a lack of notable upward inflationary momentum evident in Japan (as has been the case for decades), the broader global inflation dynamic and associated potential for a bottoming out in domestic inflation could support demand at today's auction. This, when coupled with the allure of fresh paper and the JGBi net issuance picture should mean that today's auction passes smoothly enough, per several desks.
  • Results due at 0435BST/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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