Free Trial

Futures Moved To Fresh Lows Into Lunch Break, Twist Steepening Deepens

JGBS

The light bid in futures in the wake of the aforementioned round of off-schedule BoJ Rinban & fixed rate operations faded, with futures going on to make fresh session lows ahead of the Tokyo lunch break, hitting the bell -12. The twist steepening impulse on the cash curve deepened into the break, as the major benchmarks went out 1.0bp richer to 3.5bp cheaper, with the pivot taking place between the 10- & 20-Year points. Note that the Rinban operations attracted fairly notable selling interest, albeit against smaller than usual (at least when compared to scheduled operations) purchase sizes (offer to cover ratios: 1- to 3-Year: 5.11x, 3- to 5-Year: 3.33x, 5- to 10-Year: 4.43x) which may put the space under some pressure in the early rounds of afternoon dealing.

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.