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Smooth Digestion Of 30-Year Supply, Even As Demand Moderates

JGBS

30-Year JGB supply goes smoothly, with the low price topping broader dealer expectations (which stood at 95.30, per the BBG poll), while the tail saw a very modest widening as the cover ratio moderated (slipping below the 6-auction average of 3.27x). We would suggest that some of the uncertainties we flagged ahead of the auction e.g. oil prices and questions surrounding global central bank dynamics in ’22, may have limited overall demand, but the pricing of the auction was firm enough, with demand generated by the well-documented recent steepening/cheapening in the space.

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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