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PREVIEW: Will The Headwinds Matter This Time?

JGBS AUCTION

The Japanese MOF will today sell Y3.0tn of 2-Year JGB's opening JB#416. The MOF last sold 2-Year debt on July 30, the auction drew cover of 4.56x at an average yield of -0.133%, average price of 100.467, high yield of -0.137%, low price of 100.460, with 20.4498% of bids allotted at the high yield.

  • The yield pickup for offshore investors has faded and outright levels are rich, but that hasn't provided much in the way of notable trouble for 2-Year supply in recent times.
  • The 2-/5-Year yield spread resides in familiar territory.
  • The BoJ will continue to adopt its active approach re: Rinban ops, which will provide support to this area of the curve.
  • 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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