JGB futures sat 22 ticks below settlement as...>

JGBS: JGB futures sat 22 ticks below settlement as markets broke for lunch, with

Tokyo participants reacting to the overnight risk-on dynamic and perhaps the

local reports outlining at least some of the potential for further fiscal

spending in the wake of the COVID-19 outbreak. The belly underperformed in cash

trade, so the move may have been driven by futures/pointed to some worry re:

Rinban ops covering that zone.

- The BoJ left the size of its 1-3, 5-10 & 25+ Year Rinban operations unchanged,

with the breakdown as follows.

- 1-3 Year: Offer/cover 2.64x (prev. 2.54x) Average spread 0.016 (prev. -0.002)

- 5-10 Year: Offer/cover 1.75x (prev. 3.42x) Average spread 0.017 (prev. 0.019)

- 25+ Year: Offer/cover 2.95x (prev. 4.43x) Average spread 0.012 (prev. 0.019)

- So, cover ratios little changed to notably softer, with the picture for

spreads a little more mixed.