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PREVIEW: The Japanese Ministry of......>

JGBS AUCTION
JGBS AUCTION: PREVIEW: The Japanese Ministry of Finance (MOF) will today auction
Y500bn of JGBs with 15.5-39 years until maturity in a liquidity enhancement
auction.
- The previous liquidity enhancement auction covering these maturities was held
on October 4. The auction was covered 1.839x at an average spread of +0.028%,
with a high spread of +0.037%. 30.4832% of the bids were allotted at the high
spread. Y500bn worth of paper was offered.
- The takedown was dominated by 20-Year JB#149 & 30-Year JB#29, with those lines
accounting for ~Y250bn of the issuance.
- As a reminder the 10-Year benchmark yield has retraced to levels not seen
since the BoJ tweaked its YCC back in late July, with the 10-/30-Year spread
last trading ~6.0bp back from the recent high of 78.9bp.
- 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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