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Futures Nudge Higher, 7s Lead In Cash

JGBS

JGB futures added modestly to their overnight gains during the Tokyo morning, with the contract +19 vs. settlement levels at the lunch bell. Cash trade saw 7s lead the rally, richening by ~2.0bp, indicating that the move may have been futures driven, with yields in the wings little changed.

  • The offer to cover ratios witnessed at the latest round of BoJ Rinban operations were as follows:
  • 1- to 3-Year: 3.05x (prev. 3.43x)
  • 5- to 10-Year: 3.25x (prev. 2.25x)
Note that the 5- to 10-Year operations saw a Y25bn reduction in the purchase size, as prescribed in the Bank's quarterly Rinban plan.
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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