JGB yields rose following overseas rate increases, led by 10yr underperformance, but the super-long sector saw strong buying late in the session ahead of tomorrow's 30yr auction.
Key Takeaways
- 1.The 10yr JGB underperformed during the session despite a strong auction result on the previous day, likely due to position unwinding.
- 2.The yield curve initially bear steepened but flattened back as the 30-40yr sectors outperformed sharply toward the market close.
- 3.A 30yr JGB auction is scheduled for May 14, with market participants anticipating buying demand from pension funds at current levels.
Table of Contents
- JGB Quick Comment (May 13)
- Additional Disclaimers
- Not a Municipal Advisor
- Legal Entities Disseminating this Material
- Municipal Auction Rate Disclaimer
- Securities and Exchange Commission Settlement
- NY Attorney General
- Max Rate
- Interest Rates
- Auction Rate Security Marketing Disclosure
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Authors
Taiki Suzuki
Securities
10yr JGB30yr JGBJGB Futures
Themes
Yield Curve Steepening/FlatteningAuction Supply Dynamics
Regions
Asia PacificJapan