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The long end of the JGB curve continued its....>

JGBS: The long end of the JGB curve continued its recent round of
outperformance, with futures edging higher in the morning session as fixed
income assets continue to be underpinned as the U.S. Tsy confirmed that the
prev. announced tariffs on China were scheduled to go into effect (at midnight
ET), with U.S. President Trump noting that he is eyeing up another $16bn in
China tariffs in the coming weeks. Markets now await China's response.
- The BOJ left the size of its Rinban operations covering the 1-5 & 10-25+ Year
sectors unchanged today. Looking at the breakdown of the operations the offer to
cover ratio of the 1-3 Year operations eased after ticking higher in the
previous operation, while the offer to cover ratio of the 3-5 Year ops surged to
4.8 from 3.2, the 10-25 & 25+ Year operations' offer to cover ratio held steady.
- Bulls look to 151.02-19 where the 2018 & monthly highs are situated. Daily
studies looking to correct from modestly overbought levels and the lack of
topside follow through remain concerns for bulls. In saying that, bears still
need a close below 150.89 to signal a false break higher and return initial
focus to 150.71-80.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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