Tight Tokyo Morning

Little in the way of notable market moves in the JGB space this morning, with futures initially blipping lower at the re-open, adjusting to Tuesday’s late pullback in U.S. Tsys, before recovering from worst levels into the lunch break. That left JGB futures running +29 at the bell, with Tuesday’s cautious tone weighing on equities. Cash JGBs run 0.5-2.0bp richer across the curve, with 7s leading on the back of the bid in futures.

• Local news flow was light, with continued discussions surrounding the potential restart of the government-subsidised local travel scheme evident, although there was nothing in the way of firm details forthcoming, with a decision on the matter due early this month.
• BoJ Rinban operations drew the following offer/cover ratios:
• 1- to 3-Year: 3.29x (prev. 2.73x)
• 3- to 5-Year: 3.21x (prev. 1.87x)
• 10- to 25-Year: 3.05x (prev. 3.32x)
• There shouldn’t be much in the way of tangible market reaction those metrics during early afternoon dealing.