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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.
JGBS
JGB futures bounced after the BoJ conducts its bond-buying operations to keep yields in check. On top of scheduled operations outlined in an earlier bullet, the Bank offered to buy an unlimited amount of Sep '29 debt in addition to the current Mar '32 notes as part of its daily fixed-rate operations. Bloomberg flags that the Sep '29 debt is the cheapest to deliver securities for 10-Year JGB futures, the tenor targeted by the BoJ.
- Worth noting that the yield on 7-Year JGBs topped that applied to 10-Year JGBs on Tuesday as the BoJ's aggressive debt-purchase operations had uneven impact across different segments of the yield curve.
- The 7-/10-Year yield spread returned into positive territory after today's fixed-rate operation, but has struggled to make much headway and oscillates near parity.
- Cash JGB yields sit lower across the curve as we type, with flattening impetus evident, as the super-long end outperforms.
- JGB futures trade at 147.34 into the lunch break, after running as high as to 147.63 from a session low of 146.87.
Fig. 1: Japan 7-/10-Year Government Bond Yield Spread (bp)
Source: MNI - Market News/Bloomberg
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.
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