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The super-long end of the JGB curve............>

JGBS
JGBS: The super-long end of the JGB curve underperformed on Friday, while
benchmark yields out to 20-Years edged lower, allowing the curve to twist
steepen.
- JGBs had no reaction to the latest tweak in the BOJ's Rinban operations. To
recap, the 5-10 Year operations were cut by Y10bn to Y400bn, in line with the
size seen in Thursday's unscheduled operation. Looking at the breakdown of the
operations, the offer to cover ratio of the 5-10 Year op eased to 2.7 from 3.2,
the 10-25 Year's offer to cover ratio eased to 2.1 from 2.2 and the 25+ Year's
offer to cover ratio ticked up to 3.1 from 1.84. This promoted additional
outperformance out to 20-Years.
- Futures stuck to a much tighter range than in recent sessions, reclaiming the
150 handle, edging higher in the afternoon.
- Focus now turns to Wednesday's release of the summary of opinions from the
BOJ's July MonPol decision, while this week's supply comes in the form of
10-Year JGBis tomorrow & 30-Year JGBs on Thursday.
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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