HALISTER1: Japan 5-Year Bond Auction May Fetch 101.27 Cut-Off Price: Survey

Japan 5-Year Bond Auction May Fetch 101.27 Cut-Off Price: Survey

(Bloomberg) -- Japan sells 2.4t yen ($22.2b) of 0.1% govt bonds today maturing in Sept. 2021.
  • Lowest accepted price of 101.27 is based on median est. of 13 traders surveyed by Bloomberg
    • Six estimate 101.27, four predict 101.26 and three forecast 101.28
    • Finance Ministry announces results at 12:45pm Tokyo time
  • Debt to be auctioned today fetched 101.215 on Nov. 14 in when-issued trading: JSDA data
  • Auction may go smoothly as 5-year yield are rising, Katsutoshi Inadome, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities writes in note today
    • While 5-year rate remains negative territory, demand from oversea investors may support
  • NOTE: Japan’s 5-yr notes offer fixed-coupon equivalent of 2.348% for investors who use these swaps to exchange dollars with yen and buy the debt, based on Bloomberg data
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Katsutoshi Inadome (Mitsubishi UFJ Financial Group Inc)

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