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Markets Mixed, EUR/USD The Standout


France Sells E10.355bn of OATs

JGBS: The JGB curve reversed course on Thursday, recording a session of
bear-steepening after 2 sessions of notable flattening. This was facilitated by
a recovery in broader risk sentiment, as equities ticked higher.
- The latest 2-Year JGB auction cleared smoothly, which supported shorter dated
paper, while month-end extensions perhaps limited the downside across the curve.
- The BoJ has kept its purchasing ranges unchanged from May, in line with
broader expectations.
- The BoJ will conduct Rinban operations covering the 5-10 Year bucket today.
- Barclays suggest that "today could see buyers take a slight upper hand on the
back of risk-off flows, led by the super-long end, where supply and demand is
expected to be solid in the first half of the month."
MNI London Bureau | +44 0203-865-3809 |