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Solid Demand Seen At Liquidity Enhancement Auction For OTR 1- to 5-Year JGBs

JGBS

Solid demand at the latest liquidity enhancement auction covering off-the run 1- to 5-Year JGBs, compared to the previous auction covering these maturities (March 9). Today’s cover ratio was 4.438x versus 3.205x prior.

  • Spreads observed at the auction were also much more palatable than that seen last time out with the average accepted spread +0.004% versus -0.003% previously.
  • JGB futures nudge higher and 2- & 5-year JGB yields inch lower post-auction.
  • US tsys edging away from session bests however could counter the auction impetus.

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