Curve Steepens A Little In Early Afternoon Trade

The previously flagged leg higher in oil futures seemingly provided some modest pressure for JGB futures at the afternoon open, but a bid has come back in, with the contract last +48 on the day. Meanwhile, cash JGBs run 2-4bp richer on the day, with 7s leading, as futures underpin that area of the curve.

• Note that the curve has steepened a little during early afternoon dealing, with super-long JGBs back from richest levels of the session. This was perhaps aided by the breakdown of the latest round of BoJ Rinban operations, which drew the following offer/cover ratios:
• 1- to 3-Year: 2.77x (prev. 3.01x)
• 3- to 5-Year: 1.89x (prev. 2.41x)
• 10- to 25-Year: 3.42x (prev. 2.05x)