Japan sells JPY 300bln in 40-year JGBs; b/c 3.10x (prev. 2.82x), highest accepted yield 4.125% (prev. 3.865%)
Newsquawk ·
Japan sells JPY 300bln in 40-year JGBs; b/c 3.10x (prev. 2.82x), highest accepted yield 4.125% (prev. 3.865%) PRE-MARKET INDIAN STOCKS NEWS: NCC (NJCC IS) received a INR 10.77bln order, excluding GST, from the Rural Water Supply and Sanitation Department, Visakhapatnam, Government of Andhra Pradesh China has asked local governments to pilot high-quality policies to boost consumption, according to SCMP Price at the highest accepted yield 93.69 (prev. 98.68) A 40-year JGB auction clearing with a firmer bid-to-cover than the prior sale but at a materially higher accepted yield is the familiar pattern of demand stepping in only at cheaper levels, which has been the recurring signature of the long end of the Japanese curve as the Bank of Japan has normalised policy and reduced its dominant buyer role. Super-long maturities are the segment most exposed to that withdrawal, since domestic life insurers and pensions have historically been the marginal natural buyers, and their participation tends to be yield-triggered rather than programmatic. The rise in the highest accepted yield alongside the fall in the accepted price points to a cheapening tail being absorbed rather than a shortage of demand, a distinction that matters: weak auctions in this sector have previously shown up as low cover plus wide tails, strong ones as elevated cover at a concession. Worth noting next is the reaction in the 30s and 40s sector relative to the belly, since steepening concentrated at the ultra-long end versus a parallel shift tells different stories about fiscal term premium versus rate expectations. Follow-ons are dealer take-down, subsequent super-long supply, and any Ministry of Finance or BoJ commentary on issuance mix or purchase operations, both of which have form in responding to disorderly long-end moves.
DYAX Investor Sentiment
Bullish (Long) 54% · Bearish (Short) 46%
427 participants
Related News
- Intelligence sources say that Houthis expand target bank in Saudi Arabia, according to ILNA
- Japanese Leading Economic Index Final (Jul) 117.7 vs. Exp. 117.9 (Prev. 116.2)
- Japanese Coincident Index Final (Jul) 120.6 (Prev. 118.9)
- RBA hikes the Cash Rate by 25bps to 3.60%, as expected with the decision unanimous, while it stated inflation remains elevated and some of the upside risks in August are materialising
- Australian RBA Interest Rate Decision 4.60% vs. Exp. 4.6% (Prev. 4.35%)
- US import bans on a range of Canadian products, including alcoholic beverages, dairy ingredients and some motorcycles, took effect as scheduled
