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Futures threatened to break below the..........>

JGBS
JGBS: Futures threatened to break below the overnight low in early afternoon
trade on Wednesday, but bears failed. Broader market focus fell on growing
optimism surrounding the U.S.-China vice-ministerial trade talks. The contract
had a look below the aforementioned session low in overnight trade, but finished
off of worst levels in a limited session.
- Yields were virtually unchanged across the majority of the curve, although
10-Year paper experienced some modest underperformance, last 0.032%.
- The BoJ left the size of its 5-10 Year & JGBi Rinban ops unchanged today.
Offer to cover ratios were as follows: 5-10 Year 3.28 (prev. 2.37), JGBis 5.48
(prev. 6.73).
- The BoJ will take some solace in real wage growth moving into positive
territory, although average wage growth was boosted by bonuses and other special
pay.
- Focus falls on 30-Year supply, due later today.
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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