-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessA Firm End To The Week
JGB futures initially eased from late overnight levels on the back of slightly firmer than expected national core CPI data, although the move back from lows didn’t take long, probably given the focus on previous BoJ rhetoric, which foretold such a move (in rough absolute terms), while the Bank has played down the need to tweak its policy settings given the cost-push nature of the currently inflationary impulse (in addition to technicalities surrounding mobile phone charges). The BoJ remains focused on facilitating a rebound in economic growth and fostering an environment that will generate sustained underlying inflationary pressure.
- Futures then nudged higher through the remainder of the morning, before the previously outlined uptick from session cheaps for U.S Tsys provided support in the afternoon.
- A reminder that the BoJ’s continued presence in the market as it enforces its YCC conditions is seemingly limiting any sell offs in paper out to 10s at present.
- The latest round of 20-Year JGB supply came in on the firmer side and likely aided the bid further, with the cover ratio moving higher (topping the 6-auction average of 3.34x), price tail narrowing to a much more normal level vs. what was seen at the previous 20-Year auction and low price topping wider expectations. Stabilisation of the wider core global FI space, short covering and lifer demand likely resulted in the smooth passage of supply (factors we flagged in our auction preview).
- JGB futures last print +22, just off best levels, with cash JGBs running little changed to ~2.5bp firmer. 7s and the super-long end lead the bid, with 7s benefitting from the move in futures and the super-long end rallying in the wake of supply.
- In terms of flows, note that BBG headlines covering the monthly JSDA data pointed to foreign funds selling the largest monthly amount of 10-Year JGBs on record in April, while major domestic banks bought the largest amount of 10-Year JGBs since ’14 during the month, once again, per BBG headlines.
- Looking ahead to next week, Tokyo CPI headlines the domestic docket (Friday), with 40-Year JGB supply (Thursday) and the usual BoJ Rinban & fixed rate operations also due.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.