Trial now

Corrective Cycle Still In Play


Approaching Recent Highs


JGB futures finished the Tokyo morning 6 ticks below settlement levels, under slight pressure, in line with the broader round of core market flows that were witnessed.

  • There was a lack of broader macro headline news, with participants choosing to focus on the positives surrounding U.S. fiscal developments, as opposed to any lingering negatives re: the matter. Cash JGBS cheapened at the margins. There was still signs of receiving in the longer end of the swap curve, promoting some twist flattening in that particular space.
  • The purchase sizes of the BoJ's 1-10 Year Rinabn operations saw no change, while the offer to cover ratios were as follows:
  • 1-3 Year: 3.10x (prev. 2.53x), 3-5 Year 3.94x (prev. 2.35x), 5-10 Year 3.17x (prev. 3.44x).
  • The latest address from BoJ's Sakurai added nothing of note to the monetary policy debate.
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