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

JGBS AUCTION
JGBS AUCTION: PREVIEW: The Japanese Ministry of Finance (MOF) will today sell
Y500bn of JGBs with 15.5-39 Years until maturity in a liquidity enhancement
auction. JB#1-11, #19-63 & #153-169 will be on offer.
- The previous enhanced liquidity auction covering these maturities was held on
August 27. The auction saw Y500bn offered and was covered 2.652x at an average
spread of 0.030%, and a high spread of 0.032%, with 94.6817% of the bids
allotted at the high spread.
- JB#21, #155 & #161 accounted for a cumulative ~Y237.3bn of the takedown in the
most recent liquidity enhancement auction covering this area of the curve.
- The recent BoJ Rinban dynamics and the Bank's clear desire to steepen the JGB
curve point to the need for caution re: the outcome of this offering, especially
in the wake of Tuesday's weak 10-Year offering.
- 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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