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JGB futures have trod higher in the morning....>

JGBS
JGBS: JGB futures have trod higher in the morning session, with the belly of the
curve outperforming in cash trade.
- The BOJ left the size of its Rinban operations covering the 5-25+ Year buckets
unchanged today. Looking at the breakdown of the operations, the 5-10 Year
bucket's offer to cover ratio ticked up to 2.95 from 2.39, while the offer to
cover ratio of both the 10-25 and 25+ Year buckets moderated to 2.35 and 1.84
from 2.94 and 4.19 respectively. As a reminder the most recent 10-25 and 25+
Year operations saw the Bank trim the size of each of the ops by Y10bn, and the
BOJ offered to buy an unlimited amount of 10-Year JGBs at 0.11% earlier this
week, which received no take up.
- From a technical perspective bulls look to the 200-DMA (150.74) in futures
which capped Monday's rally, and limited upside this morning. Support is noted
at Monday's low, the Feb 01 high (150.36)
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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