Upsized & Unscheduled Rinban Operations Fail To Generate Bid

JGB futures have stuck to a tight range, edging back towards their overnight lows in recent dealing, even as the BoJ outlined larger-than-planned 1- to 10-Year Rinban purchase amounts alongside an unscheduled round of 10- to 25-Year JGB purchases, as it looks to combat the impetus derived from wider core global FI markets and enforce its YCC settings.

• Cash JGBs run 0.5bp richer to 3bp cheaper across the curve, with 30+-Year paper leading the weakness given the lack of BoJ purchases in that zone of the curve, and as the market continues to test the BoJ’s will ahead of next week’s monetary policy decision.