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A Little Softer

JGBS

Futures hit the lunch break just above worst levels of the day, -12 vs. yesterday's settlement, with the wings of the curve leading the way lower in cash trade. There has been little in the way of meaningful news flow, with onshore investors playing catch up to overnight movements in the broader core global FI space.

  • Local data was broadly in line with expectations, with nothing in the way of notable movement in the latest round of Tokyo CPI & labour market data
  • A quick look at the latest round of BoJ RInban operations, which saw purchase sizes remain unchanged across the buckets were in play, reveals the following offer to cover ratios:
  • 3- to 5-Year: 2.99x (prev. 3.09x)
  • 5- to 10-Year: 2.30x (prev. 3.07x)
  • JGBis: 4.64x (prev. 3.04x)
  • Elsewhere, corporate supply saw SoftBank price Y100bn of paper across 5-, 7- & 10-Year tranches.
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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