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Elongated Weekend Catchup Due, BoJ Rinban Eyed

JGBS

JGB markets return from the elongated weekend, with participants set to assess the impact of 2 days of weakness in core global FI markets.

  • Futures shed 18 ticks in the final overnight session of last week, going out just above worst levels of post-Tokyo trade.
  • When it comes to the local docket, BoP current a/c data and the latest economy watchers’ survey will cross on Tuesday, with BoJ 1- to 25-Year Rinban operations also due.
  • The proximity to Wednesday’s 30-Year JGB auction may also play into price action on Tuesday.
  • Indicative 10-Year JGB yields hovered around the upper limit of the BoJ’s permitted -/+0.25% trading band on Friday, although market data vendors indicated that cash 10-Year JGBs failed to trade for a second consecutive session.
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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