HALISTER1: Japan’s 20-Year Bond Auction’s Outcome ’Not so Good’: UBS

Japan’s 20-Year Bond Auction’s Outcome ’Not so Good’: UBS

(Bloomberg) -- Japan’s 20-year govt bond auction’s result was “not so good” as lowest accepted price came in below expectations and tail was wider, says Yusuke Ikawa, Tokyo-based salesperson at UBS Knowledge Network, in an interview.
  • With this 20-year sale now over, however, JGBs are trading firmly on back of solid underlying demand: Ikawa; cites buying incentives such as Japan’s fiscal year-end and domestic debt redemptions
  • Sees favorable supply-demand conditions as there are some debt purchases by BOJ and there are no scheduled long-dated JGB auctions for rest of this month
  • NOTE: 20-year bond auction marks record low average yield
  • 20-year yield falls 4 bps to 0.390%; 30-year yield slips 9 bps to 0.585%
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Source: BFW (Bloomberg First Word)

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Yusuke Ikawa (UBS Asset Management Japan Ltd)

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