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Tight Morning Session, Berkshire Deal Pirces

JGBS

The JGB space hasn’t really managed to generate anything in the way of a meaningful move away from early Tokyo levels, with futures hitting the lunch break unchanged vs. yesterday’s settlement, while cash JGBs operate within 1bp of yesterday’s closing levels. Headline flow from Finance Minister Suzuki & BoJ Governor Ueda didn’t move the needle, failing to introduce fresh, tangible information. This morning’s BoJ Rinban operations generated slightly below to slight above average cover ratios (1- to 3-Year: 3.12x, 3- to 5-Year: 1.83x, 5- to 10-Year: 2.06x & 25+-Year: 3.32x), which may generate some light pressure in the wings of the curve during the early rounds of the Tokyo afternoon session. Also note that Berkshire Hathaway priced ~Y165bn of bonds in a 5-part deal, after Warren Buffett pointed to increased investment in Japanese trading houses in recent days.

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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