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Twist Steepening Out Of Auction

JGBS

JGB futures dealt either side of unchanged. The contract firmed a little in the wake of the latest 5-Year JGB auction, last +3, with twist steepening of the cash curve evident in the wake of the supply. In terms of auction specifics, the low price witnessed at the latest 5-Year auction topped broader dealer expectations, with the cover ratio firming as the lower degree of uncertainty post-BoJ review and allure of fresh paper outweighed any outright/relative value questions. Elsewhere, the tail width narrowed.

  • Local news flow saw several outlets report that the Japanese government may implement stricter COVID-related restrictions in Tokyo and other areas (namely Kyoto and Okinawa) in the coming days. Tokyo Governor Koike subsequently confirmed that the capital will ask for deeper restrictions.
  • PPI & Preliminary machine tool orders data headline locally on Friday.
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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