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A tight Tokyo session for the space, with little on the news flow front, outside of local reports that residents of Sapporo have been asked to stay at home and avoid going out as much as possible owing to the local COVID dynamic. Futures sit 2 ticks lower on the day as we move towards the close in Tokyo.
- Cash JGBs are generally richer, with some light underperformance for 5s and 10s.
- BoJ Rinban ops covering 1-10 Year paper saw purchase sizes left unchanged, with the following offer/cover ratios:
- 1-3 Year: 2.29x (prev. 2.62x)
- 3-5 Year: 2.85x (prev. 2.47x)
- 5-10 Year: 3.11x (prev. 2.34x)
- The uptick in the 5-10 Year bucket's cover ratio may have applied modest pressure to that zone of the curve in the Tokyo afternoon.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.