MNI: GERMANY GFK DECEMBER CONSUMER CLIMATE -23.3

MNI BRIEF: BOJ’s JGB Unrealised Loss Rises To JPY13.7 Tlrn

MNI BRIEF: Riksbank Dec Cut On If Things Hold - Jansson

RPT:- MNI NOV CHINA MONEY MARKET INDEX 53.5 VS OCT 38.4

MNI NOV CHINA MONEY MARKET INDEX 53.5 VS OCT 38.4

MNI BRIEF: China Profits Fall In October Y/Y

MNI: FRANCE NOV CONSUMER SENTIMENT 90

RBNZ SEES RISK OF MID-TERM INFLATION VOLATILITY

MNI: RBNZ CUTS OCR 50BP TO 4.25%

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

JGBS: Bear-Steepener As Poor 40Y Auction Weighs

JGBS
BulletAPACFixed Income BulletsJapanMarkets

JGB futures are weaker and not far from lows, -14 compared to settlement levels, on a data-light Tokyo session.

  • The issuance of 40-year bonds today encountered a poor reception, with the actual high yield overshooting dealer expectations. As per the BBG poll, the anticipated yield was projected at 2.54% versus the realised yield of 2.55%.
  • Additionally, the cover ratio was lower at 2.2364x versus 2.5798x at the prior outing.
  • As noted in the auction preview, today’s yield was approximately 30bps higher than the prior auction, with the 20/40-year yield curve slightly steeper and near its steepest level in the past 12 months.
  • Given these factors, the auction outcome was viewed as disappointing.
  • Cash US tsys are flat to 1bp richer, with a steepening bias in today’s Asia-Pac session.
  • Cash JGBs are flat to 2bps cheaper across benchmarks beyond the 1-year, with the 40-year leading. The benchmark 40-year yield is 2.1bps higher at 2.64%.
  • Swap rates are 1bp lower to 2bps higher, with the belly outperforming.
  • Tomorrow, the local calendar will see Weekly International Investment Flow data alongside BOJ Rinban operations covering 3-25-year and Inflation-Indexed JGBs.
177 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

JGB futures are weaker and not far from lows, -14 compared to settlement levels, on a data-light Tokyo session.

  • The issuance of 40-year bonds today encountered a poor reception, with the actual high yield overshooting dealer expectations. As per the BBG poll, the anticipated yield was projected at 2.54% versus the realised yield of 2.55%.
  • Additionally, the cover ratio was lower at 2.2364x versus 2.5798x at the prior outing.
  • As noted in the auction preview, today’s yield was approximately 30bps higher than the prior auction, with the 20/40-year yield curve slightly steeper and near its steepest level in the past 12 months.
  • Given these factors, the auction outcome was viewed as disappointing.
  • Cash US tsys are flat to 1bp richer, with a steepening bias in today’s Asia-Pac session.
  • Cash JGBs are flat to 2bps cheaper across benchmarks beyond the 1-year, with the 40-year leading. The benchmark 40-year yield is 2.1bps higher at 2.64%.
  • Swap rates are 1bp lower to 2bps higher, with the belly outperforming.
  • Tomorrow, the local calendar will see Weekly International Investment Flow data alongside BOJ Rinban operations covering 3-25-year and Inflation-Indexed JGBs.