Tight Tokyo Trade As Overnight Range Holds

JGBs held to tight ranges in Tokyo hours, with futures last +7, as the contract respected its overnight trading band. Cash trade saw the 3-5 Year zone outperform. The latest round of 5-15.5 Year off-the-run supply was well received, with the cover ratio nudging higher and spreads tightening when compared to the previous auction.

• The latest weekly international security flow data revealed that foreign investors registered a second consecutive week of net purchases of Japanese bonds, albeit at a slightly slower pace vs. what was seen in the previous week (Y781.5bn), although the 4-week rolling sum moved further into negative territory after a large round of weekly net purchases dropped out of the sample.