March 09, 2023 03:01 GMT
PREVIEW: Liquidity Enhancement Auction For OTR 1- To 5-Year JGBs Due
The Japanese Ministry of Finance (MOF) will today sell Y500bn of JGBs with 1-5 Years until maturity in a liquidity enhancement auction. JB#67-99, #139-154, #333-349 & #434-446 will be on offer.
- The previous liquidity enhancement auction covering these maturities was held on 24 January 2023. The auction was covered 4.150x at an average spread of -0.004%, a high spread of -0.001% was registered, with 36.7681% of the bids allotted at the high spread.
- Relatively subdued expectations re: a tweak at tomorrow’ BoJ monetary policy decision should facilitate smooth enough takedown at today’s auction, with proximity to FY end and the usual window dressing procedures further aiding the bid.
- Note that that the prior auction of this nature saw some bunching of demand, with JB#432, #437 and #444 accounting for ~Y309bn of the issuance (#432 will not be available in this auction).
- Results due at 0335GMT/1235JST.