Thursday's 20-Year JGB Sale Likely to Meet Firm Demand

Dow Jones
08/19

0503 GMT - The Japanese finance ministry's auction of 20-year bonds Thursday will likely meet firm demand, says Mitsubishi UFJ Morgan Stanley Securities strategist Yasuhiro Nakatani. "Intervention by U.S. and Japanese currency authorities has fueled speculation of an imminent rate hike, helping ease fears that the BOJ might be behind the curve and providing a tailwind" for investors, he says. "With the 20-year bond yield hovering above levels seen at the previous auction, a fair number of investors are expected to find the current yields attractive," he adds. The 20-year JGB yield was at 3.845% at Tuesday's close, with no trade yet on Wednesday.

 

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