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The longer end of the JGB curve experienced....>

JGBS
JGBS: The longer end of the JGB curve experienced some concession ahead of
today's 20-Year supply, with the line looking a little expensive vs. its longer
dated counterparts, however, some expected shorted covering requirements and an
attractive carry and roll to add some support to the supply.
- Looking at the auction results in detail, the cover ratio edged higher when
compared with the previous auction, as the carry and roll proposition seemed to
tempt dealers despite the relative value issues vs. longer dated paper.
Elsewhere the yield tail halved in width.
- There was no notable reaction straight after the auction, outside of a modest
tick higher in benchmark 20-Year yields (likely representing appetite for the
new line offered in the wake of the solid auction vs. the benchmark #JB165).
- The cash curve holds steeper in early afternoon dealing.
- JGB futures have stuck to a tight range thus far.
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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