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10-Year Swap Spread On Track For Tightest Close In Nearly 1 Year As YCC Tweak Speculation Pared

JGBS

The previously covered BoJ source pieces from BBG & RTRS leave the Japanese 10-Year Swap/JGB spread on target to close at the tightest level since August of last year as market pricing surrounding the potential for a hawkish YCC tweak from the BoJ is unwound. A quick reminder that BoJ Governor Ueda’s comments, made Tuesday, had already helped the spread (which is a proxy for BoJ YCC tweak speculation) sway from recent wides, which in themselves fell well short of the wides seen during previous instances of speculation surrounding potential YCC tweaks.


Fig. 1: Japan 10-Year Swap/JGB Spread (%)

Source: MNI - Market News/Bloomberg

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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