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Curve Twist Steepens On The Day

JGBS

The JGB curve has twist steepened today, with the long end leading the weakening observed during the Tokyo morning (on the back of the post-holiday catch up), while super-long paper has failed to return to neutral territory during the Tokyo afternoon, even with clear, widespread risk-off price action in play in the wake of Russian President Putin declaring a special operation re: Ukraine (see earlier bullets for more details). JGB futures have moved back into positive territory, more than paring early losses, last +12 on the day.

  • Local headline flow saw BoJ Governor Kuroda reaffirm the Bank’s on hold stance (as he has done on many occasions in recent weeks), while the latest round of BoJ Rinban operations (covering 3- to 10-Year JGBs and JGBis) saw offer/cover ratios in the low 2s (upticks for cover in the conventional JGB ops conducted today, but still holding at low levels, and a moderation in JGBi cover).
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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