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Afternoon trade saw JGB futures draw support...>

JGBS
JGBS: Afternoon trade saw JGB futures draw support from the softer offer/cover
ratios observed in the latest round of 1-10 Year BoJ Rinban operations, after
following broader risk-related flows during the morning session. Futures last
+7, with light underperformance in the super-long end in cash trade unwinding a
little as we move towards the bell.
- In more detail, the BoJ left the size of its 1-10 Year JGB purchases unchanged
in its latest round of Rinban ops. The breakdown revealed slightly lower
offer/cover ratios for 1-5 Year ops, although the spreads covering those buckets
widened a little vs. the respective prev. ops. Meanwhile 5-10 Year ops saw a
moderation in the offer/cover ratio and little movement in spreads.
- The swap curve twist flattened.
- Elsewhere, JSDA data revealed the largest round of monthly regional bank
buying of super-long JGBs on record.
- Flash PMI data headlines Tuesday's local docket.
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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