Trial now
GBPUSD TECHS

Key Resistance Exposed

EURUSD TECHS

Consolidating

EUROSTOXX50 TECHS

(M1) Approaching Key Support

BTP TECHS

(M1) Downtrend Extends

GILT TECHS

(M1) Key Support Zone Exposed

SCHATZ TECHS

(M1) Clears Congestion Support

AUCTION: 40-Year Supply Due

JGBS AUCTION

The Japanese MOF will today sell Y500bn of 40-Year JGB's, re-opening JB#13. The MOF last sold 40-Year debt on November 25, the auction drew cover of 2.670x at a high yield of 0.665%, low price of 94.30, with 21.4007% of bids allotted at the high yield.

  • 40s tapped the cheapest outright level seen since early '19 in recent sessions, with reflationary impulses from abroad and speculation surrounding the BoJ's monetary policy review (and potential tweaks re: the Bank's YCC scheme) applying weight in recent weeks.
  • Still, some have flagged seasonal domestic demand ahead of Japanese FY end as a potential supportive factor, in addition to the lack of a substantial range break during the latest round of cheapening.
  • In relative terms, the 30-/40-Year JGB yield spread has seen some marginal steepening into supply, but has stuck to the range established in recent weeks.
  • Results due at 0335GMT/1235JST.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com