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JGB futures registered fresh Tokyo lows in.....>

JGBS: JGB futures registered fresh Tokyo lows in afternoon trade, last dealing 6
ticks lower on the day as we move towards the close, which equates to 2 ticks
off of worst levels. The contract was pressured by wider spreads in today's BoJ
Rinban ops, as well as steady to higher offer to cover ratios in the ops.
- Super-long yields drifed higher in the afternoon, as the curve steepened at
the margin, with the BoJ's preference for a steeper curve, ahead of tomorrow's
BoJ decision (our preview will follow later today), and Wednesday's 5-15.5 Year
JGB liquidity enhancement auction possibly getting some attention.
- Elsewhere, Finance Minister Taro Aso told parliament that the MoF still looks
to achieve a primary balance surplus in fiscal year 2025, which is well advanced
vs. the gov't own exp. He also noted that the budgets that were submitted today
"need diet approval as quickly as possible to realise sustainable growth," per
BBG, and that the 2020 budget includes spending reforms.
- On the local data front final industrial production was marginally weaker than
flash estimates.
- The aforementioned BoJ decision headlines tomorrow's local docket.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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