GOLD: Holding Lower After Wednesday's Dip, Safe Haven Flows Weighed By Equities

• A decent bounce in risk sentiment sees major bourses strong and bond futures lower.  
• The 10YR is lower by -0.06 at 109.08 and remains above the 20-day EMA of 108.99
• The 2YR is lower by -0.01 at 102.51 and sits just above the 50-day EMA of 102.50
• The CGB10YR is at 1.64%

At the Tokyo lunch break, JGB futures are weaker, -18 compared to the settlement levels.

• (Bloomberg) -- The Bank of Japan shrank its balance sheet by 2.3% to 716.1 trillion yen in the past 10 days.
• Impact of data
• Cash JGBs are little changed across benchmarks out to the 30-year and 1bp cheaper beyond. The benchmark 20-year yield is 0.6bp lower at 2.353% ahead of today's supply.
• Today’s 20-year JGB auction follows very poor results across key metrics at last month’s auction. The low price underperformed dealer forecasts, according to a Bloomberg poll. Moreover, the cover ratio decreased to 2.5007x from 2.9639x in the prior auction and the auction tail lengthened dramatically from 0.34 to 1.14 – the longest since 1987.
• Today’s 20-year JGB auction offers an outright yield approximately 10bps below last month’s level and 25bps below the cycle high.
• Moreover, the 10/20 yield curve remains near its recent high, its steepest since 1999.
• Today's auction also comes after a tentative ceasefire between Israel and Iran, diminishing any haven bid it potentially may have enjoyed.
• Swap rates are 1-2bps higher, with a steeper curve. Swap spreads are wider.

*JAPAN 20Y GOVT BOND AUCTION MAY HAVE 100.50 LOWEST PRICE:POLL– BLOOMBERG