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PREVIEW: Liquidity Enhancement Auction For OTR 5- to 15.5-Year JGBs Due

JGBS AUCTION

The Japanese Ministry of Finance (MOF) will today sell Y500bn of JGBs with 5-15.5 Years until maturity in a liquidity enhancement auction. JB#1-28, #99-164, and #349-367 will be on offer.

  • The previous enhanced liquidity auction covering these maturities was held on Sep 8. The auction saw Y499.1bn issued and was covered 4.897x at an average spread of -0.018%, and a high spread of -0.016%, with 88.4873% of the bids allotted at the high spread.
  • The previous auction saw a clustering of takedown concentrated in JB#356-357 in lieu of the BoJ’s June adjustments to its bond purchase conditions as it reinforced its YCC mechanism.
  • Note that JB#356 is no longer the CtD for JGB futures, with JB#357 now holing that particular title. Expect clustered demand around that line.
  • 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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