Kicked Steeper By Broader Flow

JGB futures get another kick lower on the latest move in U.S. Tsys, last -23 ticks, with the acceleration in the move in Tsys and upticks in the offer to cover ratios in 1-5 Year BoJ Rinban ops eyed.

• Cash JGBS have generally cheapened, with the long end the underperforming as the curve steepened. There were signs of receiving in the longer end of the swap curve during Tokyo morning trade, although that faded in the afternoon, given the broader market dynamic.
• In terms of details, the purchase sizes of the BoJ's 1-10 Year Rinban operations saw no change, while the offer to cover ratios were as follows:
• 1-3 Year: 3.10x (prev. 2.53x), 3-5 Year 3.94x (prev. 2.35x), 5-10 Year 3.17x (prev. 3.44x).
• The latest address from BoJ's Sakurai added nothing of note to the monetary policy debate.