Weaker Into The Close

JGBs were offered in Tokyo, owing to the New York impetus in U.S. Tsys, with futures last -15 vs. settlement, easing to worst levels into the close. The shorter end of the cash curve outperformed, with 5-Year+ plus paper cheapening, resulting in twist steepening, as 7s and 40s represented the weak points on the curve.

• The latest round of BoJ Rinban operations saw the purchase sizes of the buckets covering 1-10 Year paper left as was, with offer/cover ratios as follows: 1-3 Year: 2.75x (prev. 1.56x), 3-5 Year: 3.23x (prev. 3.48x), 5-10 Year: 2.66x (prev. 3.17x).
• Local data was inconsequential for price action, as the core Tokyo CPI readings met expectations, softening vs. the previous month, labour market details showed no real deviation vs. expectations and industrial production provided a modest beat.
• Focus now moves to the BoJ's November Rinban plan, due to be released after hours.