JGBS: Reuters Reports Japan To Cut Super Long Bond Sales By 10%
Jun-19 03:26
Headlines have crossed from Reuters stating the Japan plans to cut super long bond sales by 10%. See this link. This follows recent poor longer dated auction results and concerns around the sharp rise in back end JGB yields. In May the 20yr yield reached 2.60%, we are now back at 2.38%, while the 40yr got to 3.70%, but is now around 3.10%.
- Reuters states: "The planned reduction in 20-, 30- and 40-year super-long bond sales would be partly offset by increased issuance of shorter-term notes, as well as bonds specifically designed for households. As a result, the total Japanese government bond (JGB) scheduled sales for the year through next March are set to fall by 500 billion yen ($3.44 billion) to 171.8 trillion yen, according to the draft of the revised bond programme."
- It adds: "The revised issuance plan will be presented to primary dealers for discussion at a meeting on Friday.".
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JGBS AUCTION: 20Y Supply Faces A Cyclical High Yield & A Steep Curve
May-20 03:06
The Japanese Ministry of Finance (MoF) will today sell Y1.0tn of 20-Year JGBs.
- Today’s 20-year JGB auction offers an outright yield near its cycle high, approximately 5bps above last month’s level.
- Moreover, the 10/20 yield curve remains near its recent high, its steepest since 1999.
- However, the 20-year JGB has richened over the past month and sits near its richest valuation within the 10/20/30 butterfly seen during the past year.
- Furthermore, the auction comes amid souring sentiment toward long-term global bonds.
- Given these dynamics, it remains to be seen whether today’s supply can generate some positive momentum for JGB auctions or if market caution will weigh on demand.
- Results are due at 0435 GMT / 1235 JT.
JGBS AUCTION: Poll: 20-Year JGB Auction
May-20 02:59
*JAPAN 20Y GOVT BOND AUCTION MAY HAVE 99.80 LOWEST PRICE: POLL– BLOOMBERG
INDONESIA: MNI BI Preview–May 2025: Is IDR Strong Enough To Cut Rates?
May-20 02:31
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- Bank Indonesia (BI) announces its meeting decision on May 21 and FX stability will remain its focus but rupiah appreciation since the last meeting may allow it to cut rates for the first time since January.
- 21 of 32 analysts surveyed by Bloomberg are forecasting a 25bp reduction to 5.5% with the rest expecting them to be on hold.
- There are signs that the economy is slowing, inflation is within the target band and expected to stay there and there is significant global uncertainty. However, the question remains if the rupiah has appreciated enough for BI to feel confident to cut rates.
