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The BOJ maintained the size of its 1-5 Year....>

JGBS: The BOJ maintained the size of its 1-5 Year Rinban operations but offered
to buy an unlimited amount of 10-Year JGBs via a fixed rate operation at 0.11%.
This was the first fixed rate operation since February and is probably being
used to stabilise the market after Friday's BOJ source report re: policy
- The announcement of the fixed rate operation put a bid into the space, and
10-Year JGB yields last trade around 1.0bp from session highs, at 0.75bp, after
hitting a low of 0.65bp.
- During the lunch break we learnt that no bids were tendered at the fixed rate
operation. Looking at the breakdown of the BOJ's Rinban operations, the 1-3 Year
bucket's offer to cover ratio eased to 4.41 from 5.36, while the 3-5 Year
bucket's offer to cover ratio held relatively steady at 3.44.
- JGB futures' range have been contained by resistance at the 200-DMA (Y150.74)
& support at the high from Feb 01 (150.36).
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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