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Consolidating Away From Best Levels Of The Day

JGBS

JGBs benefitted from the richening in play in U.S. Tsys since Friday's Tokyo close as participants returned from their elongated weekend. The presence of the latest round of BoJ Rinban operations (covering 5- to 25-Year paper) and seemingly impending extension of the state of emergency in Tokyo (and perhaps some of the other areas under their own such declarations) added to the bid. Still, the bid in local equities seemed to cap and then counter the rally, with futures now only 5 ticks higher on the day. The belly outperforms in cash trade, with 5s leading, sitting 1.5bp richer on the day at typing.

  • A quick look at the results of today's BoJ Rinban operations revealed mixed movements in the offer/cover ratios:
  • 5- to 10-Year: 2.20x (prev. 3.32x)
  • 10- to 25-Year: 2.58x (prev. 2.24x)
  • Wage data and a liquidity enhancement auction for off-the-run JGBs with 1- to 5-Years until maturity headline the local docket on Friday.
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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