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Kuroda Not Keen On Wider 10-Year JGB Yield Band

JGBS

JGB futures recovered from worst levels during morning trade, alongside the broader FI space, although Tsys have weekend a little during the Tokyo lunch break. Recent omments from BoJ Governor Kuroda revealed that he doesn't think an expansion of the BoJ's permitted 10-Year JGB yield is appropriate at present, which could provide some support to the space after the lunchbreak. Futures finished the morning session 14 ticks below settlement levels, with the curve twist steepening as super-long paper cheapened by a little over 2.0bp.

  • BoJ Rinban operations covering 1-10 Year JGBs were left unchanged in terms of size, with the following offer to cover ratios witnessed:
  • 1-3 Year: 2.16x (prev. 1.86x)
  • 3-5 Year: 2.92x (prev. 3.20x)
  • 5-10 Year: 2.00x (prev. 2.37x)
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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