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A Little Cheaper

JGBS

JGB futures threatened to test neutral levels during the Tokyo morning, but ultimately operated in negative territory for the duration of the morning session, hitting the bell -6.

  • Softer than expected domestic retail sales data had no impact on the space, with wider core FI & cross-market gyrations seemingly leading price action after an early downtick for futures.
  • Cash JGBs run 0.5-1.5bp cheaper across the curve, bear steepening, with a fairly parallel shift observed in 5+-Year paper.
  • Today’s BoJ Rinban operations drew the following offer/cover ratios:
  • 3- to 5-Year: 1.87x (prev. 1.42x)
  • 5- to 10-Year: 2.00x (prev. 1.80x)
  • 10- to 25-Year: 3.32x (prev. 2.41x)
  • The above offer/cover ratios may apply some light steepening pressure during the early rounds of the afternoon session.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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