Free Trial

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

JGBS

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#1-27, #97-163 & #348-366 will be on offer.

  • The previous enhanced liquidity auction covering these maturities was held on July 22. The auction saw Y499.3bn issued and was covered 3.660x at an average spread of -0.027%, and a high spread of -0.026%, with 77.2058% of the bids allotted at the high spread.
  • Last month’s auction saw the typical bunching patterns with JB#345, JB#348, JB#350, & JB354-357 accounting for a cumulative Y174bn of the takedown, while JB#95-96 & JB#99 accounted for a cumulative Y117bn of the takedown.
  • The reduction in the net short JGB positioning of foreign investors presents a potential headwind for demand this time out (in relative terms).
  • Results due at 0435BST/1335JST.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.