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Rinban Offer/Cover Ticks Up

JGBS

JGB futures finished the Tokyo morning +2, after the previously flagged unwind of overnight losses. 20s still provide the firmest point on the cash JGB curve, richening by ~2bp on the day.

  • Some upticks in the offer/cover ratio observed at today’s BoJ Rinban operations may apply modest pressure to the space during the early rounds of Tokyo afternoon dealing, with dealers seemingly happy to sell into the recent BoJ-induced rally. The offer/cover ratio breakdown can be found below, although it is worth remembering that the prev. 3- to 5- & 10- to 25-Year operation figures would have been impacted by the YCC enforcement measures observed last week.
  • 1-to 3- Year: 3.02x (prev. 1.95x)
  • 3- to 5-Year: 2.64x (prev. 1.31x)
  • 10- to 25-Year: 4.59x (prev. 3.51x)
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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