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Rinban Plan Tweaks Support JGB Futures,

JGBS

JGB futures added 22 ticks in overnight trade, finishing a little shy of best levels as U.S. Tsys softened into month-/quarter-end.

  • The major development for the space, post-Tokyo close, was the adjustments made in the BoJ’s Q2 Rinban operation plan, as the Bank upped its support for the space to reinforce its YCC scheme, which ultimately underpinned JGBs (detail below)
Q2 SizeQ2 Operations/MonthQ1 SizeQ1 Operations/Month
1- to 3-Year475bn4450bn4
3- to 5-Year475bn4450bn4
5- to 10-Year500bn4425bn4
10- to 25-Year125bn2150bn1
25+-Year50bn250bn1
JGBi60bn160bn1
FRNs30bnQuarterly30bnQuarterly
  • Note that early Asia pressure on U.S. Tsy futures may apply some weight to JGB futures at the Tokyo re-open, although it is hard to assess given the Rinban plan dynamic (with cash JGBs likely to richen ion Rinban plan “catch up”).
  • The latest Tankan survey headlines the domestic docket on Friday.
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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