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A Touch Firmer In The Morning, 0% Holds In 5s

JGBS

JGBs firmed during the Tokyo morning, with futures through their overnight high, albeit off best levels, hitting the bell +12. The move looks to be futures led, with 7s outperforming in cash trade (where the major benchmarks run 0.5-1.5bp richer on the session). The fact that 5s failed to test the 0% mark and backed off (a little) also supported the space.

  • The BoJ carried out the previously outlined BoJ Rinban operations, with sizes of the respective purchases unchanged, with the following offer/cover ratios observed:
  • 1- to 3-Year: 2.26x (prev. 1.61x)
  • 3- to 5-Year: 2.01x (prev. 2.43x)
  • 10- to 25-Year: 2.05x (prev. 3.19x)
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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