Free Trial

There has been a decent bid in JGBs from the...>

JGBS: There has been a decent bid in JGBs from the off, with little in the way
of catalysts observed, they are perhaps playing a bit of catch up to the move in
Tsys overnight, while the lack of adjustment in the BoJ's latest Rinban auction
& the results of yesterday's 30-Year supply also augur well for bulls.
- Looking at the breakdown of the Rinban operations, the offer to cover ratio
for the 1-3 Year bucket eased to 3.28 from 3.75, while the 3-5 Year bucket's
offer to cover ratio ticked up to 3.22 from 2.74. Moving to the longer dated
ops, the 10.25 Year bucket saw the offer to cover ratio push up to 3.85 from
2.06, while the 25+ Year bucket's offer to cover ratio edged higher to 3.20 from
- The cash curve sits a touch flatter on the session.
- The JGB future has established support at 150.06, opening the way for a
near-term corrective rebound within the overall bearish structure. The contract
has moved above 150.17, which gives potential for recovery to extend towards
150.24 and 150.27, which represents a 50% retracement of the recent sharp
decline. Failure below retains the overall bearish technical picture.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.