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The 30-Year auction was well received, as......>

JGBS: The 30-Year auction was well received, as many expected, as the
bid-to-cover ratio ticked up to 5.008 (prev. 4.220) and the low price registered
at 99.85 against expectations of 99.75. Super-long paper has outperformed on the
back of the results, with bull flattening apparent on the curve, while futures
operate at best levels, although the range remains contained.
- Bank of Japan board member Takako Masai said that it is appropriate to
maintain large-scale monetary easing because it takes time to achieve the 2%
inflation target. But she also warned against the costs of prolonged easing,
saying the BOJ must carefully watch the developments in economic, price and
financial conditions.
- Elsewhere the latest batch of weekly int'l security flow data showed that
foreign purchases of Japanese bonds hit the highest level since early March,
after heavy selling in the prev. week. Domestic lifer demand is already exp. in
the longer end, owing to a perception that the political uncertainty in Europe
will act as a deterrent for lifers in EZ bonds as FX hedged yields now look
unattractive to them.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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