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The JGB curve twist-flattened on Wednesday.....>

JGBS
JGBS: The JGB curve twist-flattened on Wednesday against the risk off backdrop
emanating from Gary Cohn's resignation, aided by a softer Nikkei 225 & stronger
JPY and lower offer to cover ratios in the longer dated buckets of the BoJ's
Rinban operations.
- The results in the shorter end ops were softer, as markets await todays
liquidity enhancement auction for 1-5y issues, which allowed the shorter end to
sell off on Wednesday.
- Tsy price action was quite contained in US hours and as a result Barclays
suggest that "today could see the JGB market trade in a range overall ahead of
the ECB Governing Council meeting, while digesting the liquidity enhancement
auction for 1-5y issues."
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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