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PREVIEW: The Japanese MOF will today...>

JGBS AUCTION
JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.0tn of 2-Year JGB's
opening #JB405. The MOF last sold 2-Year debt on August 29, the auction drew
cover of 5.404x at an average yield of -0.311%, average price of 100.829, high
yield of -0.309%, low price of 100.825, with 92.3256% of bids allotted at the
high yield.
- Prospects of a fresh round of BoJ easing are helping to anchor the short end
of the curve and will likely support demand today, even with 2-Year yields
hovering around the richest outright levels seen since 2016.
- Little to go with in terms of relative value. The 2-/5-Year spread sits around
the middle of its recent range.
- 2-Year ASW spreads sit just off the recent lows.
- Today's gyrations in short dated JPY x-ccy swaps may support demand.
- 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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