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Soft Cover At Liquidity Enhancement Auction Applies Pressure

JGBS

Core global FI markets have ticked away from session lows, which initially provided support to JGB futures at the re-open, before mixed auction internals at the latest liquidity enhancement auction for off-the-run 15.5- to 39-Year JGBs applied pressure (spread dynamics were firm, but the cover ratio was soft, probably owing to the flatness of the JGB curve). JGB futures sit -7 as a result, with cash JGBs generally marginally softer than pre-lunch levels.

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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