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Steepening Extends In Morning

JGBS

There hasn’t been much to really add when it comes to the previous colour surrounding JGBs with futures sticking to a narrow range after unwinding the post-Tokyo bid observed on Friday, hitting the lunch bell -3 vs. Friday’s settlement. Cash JGB trade saw an extension of the early twist steepening, with 20+-Year paper hitting the bell 2.5-3.5bp cheaper on the day, while paper out to 10s was little changed to 1bp richer. Domestic headline flow remains light.

  • When it comes to the latest round of BoJ Rinban operations, the details revealed the following offer/cover ratios:
  • 1- to 3-Year: 1.20x (prev. 2.93x)
  • 3- to 5-Year: 2.27x (prev. 3.21x)
  • 5- to 10-Year: 2.25x (prev. 1.71x)
  • These results may provide an incremental bid for the 1- to 5-Year zone during early afternoon trade.
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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