© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BIDEN SAYS PEOPLE'S SAVINGS ARE SECURE

MNI BRIEF: US Bank Deposits Fell USD98B Week Of SVB Collapse

MNI BRIEF: Data Not Justifying ECB Hike Beyond Expectations

EZ/UK Bond Supply Calendar: UK Long APF Sales on Monday

EZ/UK T-Bill Calendar: Germany & France to issue Monday

MNI DATA FORECASTS: EZ Inflation data in focus

MNI BRIEF: Yellen Says Americans' Deposits Are Safe

MNI BRIEF: Italy ESM Ratification Framed In EU’s Fiscal Debate

MNI: Freeland-Banks Well Capitalized, Budget To Focus Stimulus

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Trending Top 5
Market News Topics

Tepid Demand At 5-Year JGB Supply

JGBS
HomepageBond Market NewsBulletMarketsFixed Income News

5-Year JGB supply sees tepid demand as the low price misses wider dealer expectations (which stood at 100.35, per the BBG dealer survey), while the cover ratio slid to the lowest level seen at a 5-Year auction since June of last year, printing comfortably below the 6-auction average. There was also a price tail at the auction, after last month’s 5-Year offering saw no tail. It would seem that outright richness proved to be more prohibitive for demand than we expected, outweighing the relative cheapening and carry and roll proposition we flagged into supply. 5-Year yields are incrementally higher vs. pre-auction levels, while futures sit a touch above levels seen into the lunch break. Market reaction has been muted.

119 words

To read the full story

Why Subscribe to

MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

5-Year JGB supply sees tepid demand as the low price misses wider dealer expectations (which stood at 100.35, per the BBG dealer survey), while the cover ratio slid to the lowest level seen at a 5-Year auction since June of last year, printing comfortably below the 6-auction average. There was also a price tail at the auction, after last month’s 5-Year offering saw no tail. It would seem that outright richness proved to be more prohibitive for demand than we expected, outweighing the relative cheapening and carry and roll proposition we flagged into supply. 5-Year yields are incrementally higher vs. pre-auction levels, while futures sit a touch above levels seen into the lunch break. Market reaction has been muted.