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Curve Twist Flattens On BoJ Rinban Tweak

JGBS

The early twist flattening move in JGBS has held, with the major JGB benchmarks running 1bp cheaper to 4.5bp richer, pivoting around 7s. The long end is off of firmest levels of the session.

  • The move came as Tokyo reacted to Friday’s after hours move from the BoJ, which saw the Bank alter the frequency of its scheduled Rinban operations covering 10- to 25- & 25+-Year JGBs to 3x per month from the prior 2x (after upsized and unscheduled purchases were conducted in recent weeks) as the Bank looks to step up the defence of its YCC mechanism.
  • JGBs tested overnight session lows in early Tokyo trade, before moving into positive territory in the afternoon, printing +1 ahead of the close.
  • Domestic headline flow was limited at best, with mixed local data failing to provide any impetus for the space.
  • Final manufacturing PMI data and 10-Year JGB supply headline Tuesday’s domestic docket.
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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