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Back From Best Levels In The Wake Of 40-Year Supply

JGBS

JGB futures -2 as we approach the bell, with the wings of the curve
outperforming in cash throughout the day. Bonds drifted away from best
levels during the afternoon, with the latest round of 40-Year supply not
particularly impressive, although the auction passed smoothly enough.
N.B. bonds richened ahead of supply, with specialness in repo suggesting
a short base had formed.

  • Elsewhere, reports have done the rounds pointing to the potential for
    increased Sino-Japan tensions surrounding Chinese developed
    phone apps, with a senior ranking ruling party member failing to play
    down the prospects of such a move in public remarks.
  • 1-5 Year BoJ Rinban ops headline locally on Wednesday.
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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