Volatility in JGB Market Remains High
0021 GMT — Volatility in the JGB market remains high. 'With trading thin, price movements are large in the long-term sector in particular, and the levels at which it will settle are unclear,' Citi Research's Tomohisa Fujiki says in a recent research report. The market hasn't fully stabilized, says the rates strategist, adding Citi sees significant price swings around the Japanese Finance Ministry's liquidity enhancement auction on Tuesday. The ministry is scheduled to offer a combined 450 billion yen worth of many issues of outstanding 20-year, 30-year and 40-year JGBs. The 10-year JGB futures are 0.16 yen higher at 141.24 yen. (ronnie.harui@wsj.com)
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