HALISTER1: Japan’s 2-Year Bond Auction Draws Widest Tail Since Dec. 1998

Japan’s 2-Year Bond Auction Draws Widest Tail Since Dec. 1998

(Bloomberg) -- Japan sold 2.1t yen ($20b) in 2-year govt bond with tail, difference between avg and low prices, at 0.060, widest since Dec. 1998 and up from 0.008 at June 28 sale.
  • Auction outcome is “very bad,” says Naoya Oshikubo,
rates strategist at Barclays
  • Click here for results
  • Lowest accepted price was 100.87, below est. 100.94 in Bloomberg survey of 12 primary dealers
  • Bid-to-cover ratio of 3.95, lowest since Sept. 2015, and down from 4.96 at prior sale
  • Average yield was -0.361%, marking record low, and down from -0.299% at previous sale
  • In secondary market, yield on 0.1% note due July 2018 rises 0.5 bp to -0.365%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Naoya Oshikubo (Barclays PLC)

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