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Flatter Into The Weekend

JGBS

JGBs have generally followed the lead of the wider cross-asset gyrations, with futures operating around the middle of their Tokyo range as we move towards the bell, last +3, while cash JGBs sit flat to 2bp richer across the curve, flattening as super-long paper leads the bid.

  • The latest round of 5-Year JGB supply passed smoothly with the low price just about topping wider expectations, tail holding tight and cover ratio moving to the highest level observed at a 5-Year auction since November ’21. It would seem that outright and relative value appeal, coupled with carry & roll considerations, outweighed the impact of any worry surrounding ongoing wider market vol., facilitating a solid auction.
  • Comments from BoJ Governor Kuroda & Japanese Finance Minister Suzuki failed to move the needle on BoJ policy & JPY intervention, respectively.
  • Elsewhere, an MoF official provided no comment when questioned on potential JPY intervention on Thursday.
  • CPI data (due Friday) headlines next week 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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