Halister News

(Bloomberg) -- JGBs fall on weak results of BOJ’s purchases of short-dated notes today and on price concession before 20-year auction tomorrow, says Shuichi Ohsaki, chief Japan rates strategist at Bank of America Merrill Lynch.

• High bid-to-cover ratio at BOJ’s offer to buy 1- to 3-year bonds had a negative impact, Tokyo-based Ohsaki says in an interview; NOTE: This ratio was at 5.30, highest level for same tenors since Aug. 2014, indicating investors are more willing to offload their bond holdings
• Tomorrow’s 20-year JGB sale could go smoothly on possible buying of this debt to sell them at BOJ’s bond purchases: Ohsaki; expects 20-year JGB yield of around 0.30% to be attractive; with 20-year part of curve relatively cheap compared with 30- and 40-year sectors, sees possible interest to put on steepeners in super-long end
• 2-year yield up 1 bp at -0.245%, 5-year yield up 0.5 bp to -0.220%, 10-year yield up 0.5 bp to -0.105%, 20-year yield up 1.5 bps to 0.275%