JGB futs have traded in a fairly contained.....>

JGBS: JGB futs have traded in a fairly contained range, a little more insulated

vs. rest of the global core FI space re: the latest risk-on/off swings, with the

contract finishing the morning session +12 vs. settlement, as bulls failed to

force a clean break above the overnight session highs. Curve bull flattened.

- The BoJ conducted its first round of Rinban ops covering 10-25+ Year paper

since monthly number of purchases of the buckets were cut to 2 from 3. The Bank

lifted its 10-25 Year purchases size by Y20bn to Y120bn and left the size of its

25+ Year purchases unchanged. Just worth highlighting that if the BoJ buys the

same amount of 10-25 Year JGBs at the single remaining Rinban operation covering

this bucket in Feb then it will buy Y240bn worth of JGBs in the bucket in total

this month vs. Y300bn last month. In the 25+ Year bucket, a steady purchase size

at the final Rinban Feb op covering the bucket would see the total monthly

purchase amount covering the bucket fall by Y30bn. Breakdown of operation

results below:

- 10-25 Year: Offer/Cover 5.88x (prev. 3.24x) Average Spd -0.009 (prev.-0.011)

- 25+ Year: Offer/Cover 5.71x (prev. 4.26x) Average Spd -0.013 (prev.-0.009)