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Muddling Through Friday

JGBS

JGB futures struggled for a real sense of direction, giving away the early catch-up bid, last -2, with some light underperformance creeping into the belly of the cash curve ahead of the lunchbreak, before the latest round of 5-10 Year BoJ Rinban ops provided modest support, on the back of a moderation in the offer to cover ratio (down to 1.72x) and a tightening of the spreads the ops were conducted at.

  • Longer dated swap spreads have tightened.
  • Finance Minister Aso offered little new, as he pointed to the need to revitalise the economy and focus on seeking a balanced budget.
  • The local docket is limited on Monday.
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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