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No Real Auction Setup Ahead Of Tomorrow's Supply

JGBS

There was no meaningful, lasting underperformance for super-long JGBs, with light cheapening apparent across the curve as participants assessed Friday's after-Tokyo hours moves in U.S. Tsys as well as what we have seen in early Tsy trade this week, with some also looking for potential setup ahead of tomorrow's 30-Year JGB supply.

  • Japanese swaps were generally wider across most of the curve, with that particular curve showing a more conventional steepening pattern.
  • 1-3 & 5-10 Year BoJ Rinban ops saw their respective sizes unchanged, with offer/cover ratios moderating vs. prev. ops.
  • Futures trade lower, last -9 vs. settlement.
  • BoJ Governor Kuroda is due to speak later today.
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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