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JGB yields sit flat to 1.0bp higher as we......>

JGBS
JGBS: JGB yields sit flat to 1.0bp higher as we move towards the close, with
some slight outperformance in the 5-10 Year sector.
- This was likely the product of the details of the BoJ's 5-10 Year Rinban
operations, which saw a clear moderation in the offer to cover ratio (1.88x vs.
prev. 3.00x), even as the average spread of the moved into positive territory.
Meanwhile the offer to cover ratios in the 1-3 (3.93x prev. 2.25x) & 3-5 (2.76x
prev. 2.06x) Year buckets edged higher, with average spreads moving further into
positive territory, which likely added pressure to the shorter end. The purchase
sizes were left unchanged across all three buckets.
- Futures have stuck to a tight range, last -7 on the day.
- The latest round of Japanese CPI data was virtually ignored by market
participants.
- The BoJ will conduct 10-25+ Year Rinban operations on Monday.
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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