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Familiar Matters Eyed

JGBS

JGB futures were ultimately little changed overnight, closing +1, holding to a tight range, with 2-way flow seen in U.S. Tsy markets during that time, as US FI unwound its early losses.

  • Kyodo sources have noted that the latest Japanese supplementary budget will result in an additional Y22.4tn worth of JGB issuance. Participants continue to eye the split of the additional issuance burden, in terms of maturity.
  • Elsewhere, PM Suga noted that the country's Go To travel campaign will be suspended between Dec 28 and Jan 11, owing to the local COVID-19 situation. This comes as Suga continues to feel the pressure from his slide in the opinion polls.
  • Little of note on the local docket on Tuesday, with 6-Month bill supply and a liquidity enhancement for off-the-run 5-15.5 year JGBs due.
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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