Japan sells JPY 2.12tln 2-year JGBs b/c 4.03 (prev. 3.89), average yield 1.905% (prev. 1.964%)
Newsquawk ·
Lowest accepted price 99.975 (prev. 100.055) Weighted average price 99.989 (prev. 100.069) Japanese 2-year auctions of this size have become a recurring test of how the front of the JGB curve absorbs supply as the Bank of Japan normalises, and this print fits the established pattern: bid-to-cover ticking up as the average accepted yield edges lower reflects demand being drawn in at cheaper levels, not a surge in outright appetite. The tail in price holding steady at a negligible level is the cleaner signal, pointing to orderly price discovery with the concession doing its work. The distinction worth drawing is between cover and tail: in episodes of genuine indigestion the tail widens first, cover deteriorates second, and neither has happened here. Prior form in this cycle is that short-dated JGB sales clear well provided the preceding move in yields has reset the curve toward the expected policy path, with weakness appearing only when auctions arrive against a hawkish surprise from the BoJ or a softening in bank demand. The follow-ons are the longer-dated sales on the calendar, where duration risk makes demand more sensitive to BoJ communication, and whether dealer intermediation keeps absorbing supply without term premia rebuilding. 28 Oct, 21:25 BoC Governor Macklem says US deficit spending is a question of political will, adds inflation forecast is based on pass-through of fuel costs, and estimate of neutral rate of interest may rise, while he will have more to say on his future in due course 28 Oct, 18:53 Fed Chair Warsh (Q&A): Stable correlation between oil prices rising and market-set interest rates, until recently; interest rates have rolled over to the downside and take note that oil futures prices have moved up 28 Oct, 18:51 Fed Chair Warsh (Q&A): There is no soft inflation, no implicit inflation target; there's a target of price stability, and it's 2% as measured by PCE 28 Oct, 18:42 Fed Chair Warsh (Q&A): Overwhelming judgement at the FOMC is that monetary medicine is starting to work 28 Oct, 18:40 Fed Chair Warsh (Q&A): Reiterates that in September removed a dose of accommodation and inflation compensation as measured by swaps is going the right way; period in front of them is information rich Fed Chair Warsh says decided to change FOMC schedule next fall and 8 meetings is right number a year; one meeting will not have a vote on policy rate and will be focused on strategy 9 hours ago Fed Chair Warsh says made clear readiness to act and have shown willingness to act 9 hours ago Fed Chair Warsh says not surprised by financial market volatility and discussed geopolitics and technology; inflation expectations remain anchored as they are 9 hours ago Fed Chair Warsh says unwilling and unable to call financial conditions tight 9 hours ago Fed Chair Warsh says the committee believes that the accumulation of more information will help it determine the policy stance appropriate to ensure a timely return of inflation to the 2% goal and the committee will deliver price stability 9 hours ago Fed holds rates at 3.75-4.00%, as expected; 2 dissenters (Cook and Hammack) 9 hours ago US Fed Interest Rate Decision 4% vs. Exp. 4.0% (Prev. 4%) 9 hours ago BoC Deputy Governor Rogers says uncertainty over the economy is hanging over the Canadian housing market 13 hours ago [MARKET ANALYSIS] Asia-Pac stocks are mixed as the region digests recent key events including the FOMC and several big tech earnings 53 min ago [MARKET ANALYSIS] DXY remains softer after the FOMC lacked any hawkish surprises 1 hour ago [MARKET ANALYSIS] T-note futures edged higher amid softer oil prices and following the post-FOMC chop 1 hour ago PRE-MARKET CHINESE STOCKS NEWS: Earnings deluge 2 hours ago Samsung Electronics (005930.KS) Q3 (KRW) net 75.2tln (exp. 89.1 tln, prev. 12.0tln Y/Y), operating profit 107.4tln (prelim. 107.4tln), revenue 195.3tln KRW (prelim. 195tln) 3 hours ago PBoC is expected to set USD/CNY mid-point at 6.6596 (prev. 6.7165) 3 hours ago US warns allies to brace for possible Iran strikes, according to AP citing two diplomats 5 hours ago
DYAX Investor Sentiment
Bullish (Long) 53% · Bearish (Short) 47%
491 participants
Related News
- Large explosion occurred at a steelmaking complex of the Brazilian National Steel Company in the city of Volta Redonda, in the state of Rio de Janeiro.
- North Korea reportedly fired around 10 missiles, according to media reports
- Russia downed most of the 613 drones that headed towards Moscow overnight, according to reports citing the mayor
- Japan's Coast Guard says North Korea fired a suspected ballistic missile
- Russian President Putin's aide said Moscow is negotiating with Washington regarding lifting sanctions against the Russian Direct Investment Fund
- Seoul Deems North Korean Border Weapon Deployment Performative Amid Wider Middle East Tensions
