August 21, 2024 03:56 GMT
Futures Gap Lower After Lunch Consistent With BoJ Rinban Operation Results
JGBS
In early afternoon trade, JGB futures are stronger, +8 compared to settlement levels, but well off session bests.
- The weakening in the early rounds after lunch is consistent with the results of this morning’s BoJ Rinban operations, which saw higher offer cover ratios (1-3-year: 3.91x, 3-5-year: 2.48x and 5-10-year: 2.99x).
- Outside of the previously outlined Trade Balance data, there hasn't been much in the way of domestic drivers to flag.
- Cash US tsys are slightly cheaper in today’s Asia-Pac session after yesterday’s gains.
- Cash JGBs are flat to 1bp richer, with the belly of the curve outperforming. The benchmark 10-year yield is 0.1bps lower at 0.892% versus the cycle high of 1.108%.
- Swaps are slightly mixed, with rate swings bounded by +/- 1.5bps. Swap spreads are generally wider.
127 words