Intriguing RV graphs: Signs of improving super-long JGB market conditions
Key points
Disorderly upward yield movements due to declining liquidity seems to have been avoided; relatively limited widening for bid-ask spreads
Likely reflecting (1) easing concerns over the supplementary budget and (2) improved supply-demand conditions amid reduced MoF issuance and entry of some overseas real money investors
Fiscal policy warrants attention; market remains susceptible to influence of overseas speculators, but signs of improving market conditions vs last year