NORGES: RATES PROBABLY AT CURRENT LEVEL QUITE SOME TIME

RATES MAY NEED TO BE ON HOLD LONGER THAN ENVISIONED: NORGES

MNI: NORGES BANK LEAVES RATES UNCHANGED AT 4.50%

MNI WATCH: CNB Seen Cutting 50Bps to 5.25%, Signal Slower Pace

MNI China Daily Summary: Tuesday, April 30

MNI BRIEF: China To Keep Tackling Risks In Real Estate, Debts

MNI: BAKER HUGHES US RIG COUNT 605; OIL RIGS 499; GAS RIGS 102

BoE Data Watch

RBA Data Watch

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Twist-Flattener, Heavy Local Calendar Tomorrow Incl Tokyo CPI & 2Y Supply

JGBS
BulletMarketsFixed Income BulletsHomepage

JGB futures are stronger and at session highs, +17 compared to the settlement levels, after more than reversing the gap lower that followed the release of the BoJ Summary of Opinions for the March MPM.

  • There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined BoJ Summary of Opinions (March MPM) and Weekly International Investment Flows.
  • (Bloomberg) -- Japanese bonds suffered the heaviest selling by foreign investors in more than a year last week, as the country’s central bank raised its short-term policy rate for the first time in 17 years. (See link)
  • This morning’s BoJ Rinban operations saw negative spreads and lower offer cover ratios (3-5-year: 1.43x, 5-10-year: 1.49x and 10-25-year: 2.52x). This appeared to generate some support in the early rounds of the Tokyo afternoon session.
  • The cash JGB curve has twist-flattened, pivoting at the 2s, with yield movements bounded by +1.2bps (1-year) and -4.4bps (40-year). The benchmark 10-year yield is 1.8bp lower at 0.707% versus the YTD high of 0.801%.
  • Swap rates are mostly lower. Swap spreads are tighter out to the 10-year and wider beyond.
  • Tomorrow, the local calendar sees Tokyo CPI, Jobless Rate, Job-To-Applicant Ratio, Retail Sales, Industrial Production and Housing Starts data, along with 2-year supply.
207 words

To read the full story

Close

Why MNI

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.

JGB futures are stronger and at session highs, +17 compared to the settlement levels, after more than reversing the gap lower that followed the release of the BoJ Summary of Opinions for the March MPM.

  • There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined BoJ Summary of Opinions (March MPM) and Weekly International Investment Flows.
  • (Bloomberg) -- Japanese bonds suffered the heaviest selling by foreign investors in more than a year last week, as the country’s central bank raised its short-term policy rate for the first time in 17 years. (See link)
  • This morning’s BoJ Rinban operations saw negative spreads and lower offer cover ratios (3-5-year: 1.43x, 5-10-year: 1.49x and 10-25-year: 2.52x). This appeared to generate some support in the early rounds of the Tokyo afternoon session.
  • The cash JGB curve has twist-flattened, pivoting at the 2s, with yield movements bounded by +1.2bps (1-year) and -4.4bps (40-year). The benchmark 10-year yield is 1.8bp lower at 0.707% versus the YTD high of 0.801%.
  • Swap rates are mostly lower. Swap spreads are tighter out to the 10-year and wider beyond.
  • Tomorrow, the local calendar sees Tokyo CPI, Jobless Rate, Job-To-Applicant Ratio, Retail Sales, Industrial Production and Housing Starts data, along with 2-year supply.