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Off Early Lows, Aided By U.S. Tsys

JGBS

A strong 10-Year auction there, with the tail holding narrow, cover ratio above 4.0X and low price topping dealer estimates as proxied by the BBG poll (100.49). The auction helps futures into positive territory, now +2 vs. Monday's settlement, with the contract recouping the holiday catch up losses seen in early dealing. Cash JGB yields are marginally mixed across the curve.

  • Rhetoric from BoJ governor Kuroda has failed to add anything fresh to the monetary policy discussion, as he focused on the need for the smooth functioning of FX markets, as he repeated well-trodden rhetoric.
  • Elsewhere, Finance Minister Aso seemed fairly non-committal re: the potential details of any further fresh stimulus, as he reiterated the government's desire to act in a "firm" manner.
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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