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Modest Pressure On Monday

JGBS

JGB trade was relatively muted, with futures 7 ticks below Tokyo settlement levels at typing, adding to the modest overnight session dip, while the major cash benchmarks trade little changed to 1.0bp cheaper across the JGB curve. An uptick in the cover ratio witnessed at the latest round of 25+ Year BoJ Rinban ops applied some marginal pressure to the longer end during the Tokyo afternoon.

  • In terms of details, the latest round of BoJ Rinban operations drew the following offer/cover ratios:
  • 3- to 5-Year: 2.49x (prev. 2.18x)
  • 5- to 10-Year: 2.25x (prev. 3.20x)
  • 25+-Year: 4.74x (prev. 4.52x)
  • News flow was light, with the summary of the latest BoJ monetary policy revealing nothing in the way of surprises, while PM Suga pointed to the government's "high alert" re: the slight rise in Tokyo's COVID case count, while underlining the government's desire to implement a nimble response to the virus.
  • Tuesday will bring the release of the latest local labour market report, retail sales data & 2-Year JGB supply.
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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