HALISTER1: Longer-Term JGBs Sold on Worry Over High Volatility: SMBC Nikko

Longer-Term JGBs Sold on Worry Over High Volatility: SMBC Nikko

(Bloomberg) -- JGB market is still reeling from aftermath of elevated volatility in past 2-3 days, making investors nervous, says Makoto Noji, senior interest-rate strategist at SMBC Nikko Securities, in an interview.
  • “Longer-dated sector was sold on concerns over high volatility,” says Tokyo-based Noji; adds investors usually make their purchases on an assumption that market will be somewhat stable
  • Says today’s 5-year JGB sale went “smoothly,” in line with market expectations, due to pre-auction concession; NOTE: 5- year auction drew average yield of -0.142%, fresh record low
  • 5-year yield up 2 bps to -0.155% in secondary market
  • 10-year yield up 2 bps to -0.010%, 20-year yield up 4.5 bps to 0.490% and 30-year yield up 8 bps to 0.785%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Makoto Noji (SMBC Nikko Securities Inc)

To de-activate this alert, click here

UUID: 7947283