JGBS: Richer At Lunch, Risk-On, US-UK Trade Deal
May-08 03:11
At the Tokyo lunch break, JGB futures are stronger, +28 compared to the settlement levels. * "Gover...
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
JGBS AUCTION: PREVIEW - 30-Year JGB Auction Due
Apr-08 03:09
The Japanese Ministry of Finance (MoF) will today sell Y800bn of 30-Year JGBs. The MoF last sold 30-year debt on 6 March 2025. The auction drew cover of 3.4997x at an average yield of 2.500%, an average price of 96.57, a high yield of 2.508%, and a low price of 96.45, with 92.5925% of bids allotted at the high yield.
- Last month’s 30-year bond auction delivered mixed results. The low price exceeded dealer expectations, according to a Bloomberg poll. However, the cover ratio slipped to 3.4997x from 3.7422x—the highest since 2020—while the auction tail widened to 0.12 from 0.07, signalling softer demand.
- Today’s supply also follows a 10-year JGB auction, which delivered mixed results. The low price fell short of expectations, according to the Bloomberg dealer poll. However, the cover ratio increased to 3.1475x from 2.6566x, the weakest since October 2021, and the tail shortened to 0.11 from 0.21.
- Results are due at 0435 BST / 1235 JT.
JGBS AUCTION: Poll: 30-Year JGB Auction
Apr-08 03:09
*JAPAN 30Y GOVT BOND AUCTION MAY HAVE 100.00 LOWEST PRICE:POLL – BLOOMBERG
AUSSIE BONDS: Cheaper But At Bests, Tracking US Tsys, CC Down, BC Unch
Apr-08 02:29
ACGBs (YM -12.0 & XM -16.5) are significantly cheaper but at session highs after today’s domestic confidence data.
- Westpac’s measure of consumer confidence sank 6% m/m in April to 90.1 down from 95.9 in March, which had been boosted by February’s rate cut. Both current conditions and expectations were lower.
- NAB’s March business survey was little changed from February with confidence down 1 point to -3 and conditions up 1 point to +4. The result is in line with moderate growth. The survey results don’t suggest any worry about a global trade war before US reciprocal tariffs were announced, which were higher than expected.
- However, the key driver of today’s intra-session move is likely to be US tsys. Cash US tsys are showing a bull-steepener, with benchmark yields flat to 3bps lower, in today's Asia-Pac session after yesterday’s extremely heavy session.
- Cash ACGBs are 11-16bps cheaper with the AU-US 10-year yield differential at +10bps.
- Swap rates are 8-13bps higher, with the 3s10s curve steeper.
- The bills strip has cheapened dramatically, with pricing -5 to -12.
- RBA-dated OIS pricing is 4-14bps firmer across meetings today. A 50bp rate cut in May is given a 44% probability, with a cumulative 110bps of easing priced by year-end.
