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JGB futures softened, with a focus on follow...>

JGBS
JGBS: JGB futures softened, with a focus on follow through from NY hours and
local fiscal matters. The contract sits 22 ticks softer on the day ahead of the
bell as the belly underperforms in cash, despite encouraging signs in the latest
round of 5-10 Year Rinban ops (move may be futures driven).
- As a reminder, 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.
- Core machine orders and 20-Year supply headline the local docket on Wednesday.
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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