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Off Worst Levels

JGBS

JGB futures have worked their way off overnight lows (despite seeing a brief retest in early Tokyo trade), tracking the broader impetus in core global FI markets, hitting the lunch bell 2 ticks below yesterday's settlement levels in the process. The major cash JGB benchmarks are little changed on the day in yield terms.

  • A quick look at the details surrounding the latest round of BoJ Rinban operations reveals the following offer/cover ratios:
  • 1- to 3-Year: 3.02x (prev. 2.83x)
  • 5- to 10-Year: 1.84x (prev. 2.35x)
  • 25+-Year: 4.15x (prev. 5.79x)
  • There should be little, if any, trading impetus in the early part of the Tokyo afternoon on the back of those cover ratio movements.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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