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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, #100-165 & #350-368 will be on offer.

  • The previous liquidity enhancement auction covering these maturities was held on 24 February 2023. The auction was covered 3.444x at an average spread of -0.019%, a high spread of -0.017% was registered, with 49.4514% of the bids allotted at the high spread.
  • Deminished terminal rate pricing covering the major global central banks, less market-based pressure on the BoJ and the well-documented worry re: the global banking sector should facilitate smooth enough underwriting of today’s supply even given the recent richening.
  • Also note that lingering short cover requirements in the zone could provide another source of demand.
  • 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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