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Light Pressure On Rinban

JGBS

JGB futures softened in afternoon trade, finishing -7, as the details of the BoJ's latest round of 1-10 Year Rinban ops revealed an uptick in the offer/cover ratios across the 3 buckets that cover that sector of the curve, while the purchase sizes were left unchanged. Cash JGBs lacked any clear sense of direction during the session.

  • Local headline flow has been light, with comments from Economy Minister Nishimura confirming the suspension of the Go To travel campaign over the new year period and offering little new re: broader fiscal matters. Local data had no impact on the space.
  • Late in the day saw local news reports suggest that Japan will draft a record sized budget for the upcoming fiscal year, which isn't a surprise given the ongoing COVID-19 uncertainty.
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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