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MNI China Daily Summary: Wednesday, Nov 22

(RPT)MNI INTERVIEW:Spending Remains Too Hot For BOC-Ex Adviser

MNI BRIEF: Reduce Energy Use Over Consumption - Ex Minister

EZ/UK Bond Supply Calendar: Italy Exch / Germany Bund Auct Wed

EZ/UK Bond Supply Calendar: Germany, Finland Auction Tuesday

EZ/UK T-Bill Calendar: 3/6-Month EU-Bills Auction on Wednesday

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

MNI BRIEF:Macklem-Fiscal Policy Turning Unhelpful On CPI Fight

MNI BRIEF: Stabilizing Prices Helps BOC Turn Neutral-Freeland

Futures Richer & At Session Highs Ahead Of 20Y Supply

JGBS
BulletMarketsFixed Income NewsHomepage

At the Tokyo lunch break, JGB futures are sharply higher, +32 compared to settlement levels, after closing the overnight session with a small gain.

  • With the domestic data calendar empty today, local participants appear to have focused on an extension of yesterday’s longer-dated US tsy rally in today’s Asia-Pac session. Cash US tsys are flat to 2bps richer, with the curve flatter.
  • The cash JGB curve bull-flattens, with yields flat to 3.4bps lower. The benchmark 10-year yield is 2.6bps lower at 0.724% versus the cycle high of 0.97% set in late October and the BOJ's 1% YCC reference rate.
  • The 20-year yield is 3.4bps lower at 1.443%, outperforming on the curve, ahead of today’s supply. Today's issuance of 20-year JGBs follows a challenging reception in October but solid demand metrics for November’s 30-year supply.
  • The current 20-year auction features an outright yield approximately 10bps lower than the level seen in mid-October and around 30bps lower than the cycle high set late in October. While one might anticipate reduced demand in isolation, it's crucial to consider the improved sentiment towards longer-dated bonds globally in November, especially following positive inflation data.
  • The swaps curve has also bull-flattened, with swap spreads generally tighter.
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At the Tokyo lunch break, JGB futures are sharply higher, +32 compared to settlement levels, after closing the overnight session with a small gain.

  • With the domestic data calendar empty today, local participants appear to have focused on an extension of yesterday’s longer-dated US tsy rally in today’s Asia-Pac session. Cash US tsys are flat to 2bps richer, with the curve flatter.
  • The cash JGB curve bull-flattens, with yields flat to 3.4bps lower. The benchmark 10-year yield is 2.6bps lower at 0.724% versus the cycle high of 0.97% set in late October and the BOJ's 1% YCC reference rate.
  • The 20-year yield is 3.4bps lower at 1.443%, outperforming on the curve, ahead of today’s supply. Today's issuance of 20-year JGBs follows a challenging reception in October but solid demand metrics for November’s 30-year supply.
  • The current 20-year auction features an outright yield approximately 10bps lower than the level seen in mid-October and around 30bps lower than the cycle high set late in October. While one might anticipate reduced demand in isolation, it's crucial to consider the improved sentiment towards longer-dated bonds globally in November, especially following positive inflation data.
  • The swaps curve has also bull-flattened, with swap spreads generally tighter.