Free Trial

Firmer, Led By Futures

JGBS

The early bid, as Tokyo reacted to Thursday’s major central bank meetings and seemingly elevated chances of BoJ Deputy Governor Amamiya succeeding current Governor Kuroda, has held, leaving futures 39 ticks better off into the close. Wider cash JGBs are flat to 3.5bp richer, with 7s leading on the curve owing to the bid in futures. Futures breached their overnight peak on the push higher.

  • Swaps have generally lagged the move in JGBs, leading to wider swap spreads in the main. Local headline flow has been fairly subdued, with continued rhetoric re: Sino-Japan relations and BoJ Governor Kuroda outlining the current paper loss of the BoJ’s bond holdings providing the highlights.
  • Elsewhere, Kuroda reiterated the need for maintaining ultra-easy policy settings to stimulate wage growth, with various other comments/themes reiterated in his latest address in front of parliament.
  • Offer/cover ratios in the latest round of BoJ Rinban operations (covering 1- to 5- & 10- to 25+-Year JGBs) were subdued printing at 1.6-2.0x, this may have provided a slight bid in the Tokyo afternoon.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.