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Broader risk aversion supported the space,.....>

JGBS
JGBS: Broader risk aversion supported the space, allowing futures to add to
their overnight gains, as the contract finished the morning session +23 ticks.
- The belly of the curve outperformed in cash trade, while super-long swaps saw
notable tightening to JGBs after a bit of a breather yesterday.
- Coronavirus matters remain front and centre, with the latest dovish salvo
given by BoJ dovish dissenter Kataoka.
- The BoJ left the size of the purchases in its latest round of 1-10 Year Rinban
ops unchanged, breakdown as follows:
- 1-3 Year: offer/cover ratio 3.17x (prev. 4.05x) average spread -0.007 (prev.
-0.006)
- 3-5 Year: offer/cover ratio 3.54x (prev. 3.02x) average spread -0.011 (prev.
-0.008)
- 5-10 Year: offer/cover ratio 2.58x (prev. 2.33x) average spread -0.015 (prev.
-0.014)
- Cover ratios mixed vs. prev., while average spreads nudged tighter.
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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