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JGBs Bull Flatten In Tokyo Morning, Futures Extend Overnight Gains

JGBS

Cash JGBS bull flattened this morning, with the major benchmarks running 0.5-2.5bp richer, aided by Tuesday’s bid in U.S. Tsys (although the U.S. curve bull steepened on Tuesday). Still, futures stuck to a narrow range, adding incrementally to the overnight bid, hitting the lunch bell +23.

  • Note that the Japanese government maintained its assessment of the Japanese economy in its latest monthly observation. This comes after an upgrade of its overall economic view in April.
  • BoJ Rinban operations saw the following offer/cover ratios
  • 1- To 3-Year: 1.92x (prev. 2.07x)
  • 3- To 5-Year: 2.45x (prev. 2.04x)
  • 5- To 10-Year: 1.95x (prev. 2.96x)
  • 10- To 25-Year: 4.27x (prev. 3.22x)
  • There wasn’t any meaningful macro reaction to the latest round of North Korean missile launches, which drew the usual rounds of condemnation from Japanese officials, as well as fresh warnings re: the potential for nuclear tests on the Korean peninsula.
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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