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A bit of a roller coaster session for JGB......>

JGBS
JGBS: A bit of a roller coaster session for JGB futures after the long holiday
weekend, with the return of the geopolitical risk premium allowing futures to
quickly reverse the losses sustained in the final overnight session of last
week. The contract then eased back from best levels in the afternoon, to last
trade 2 ticks lower on the day.
- The early, modest bull flattening gave way in the afternoon, with yields last
little changed.
- The BoJ left the size of its 1-5 Year JGB purchases unchanged vs. the previous
operations. The 1-3 Year operations saw an offer to cover ratio of 3.35x (prev
2.21x) while the 3-5 Year operations saw an offer to cover ratio of 2.79x (prev.
2.72x). The average spreads across both buckets moved back into negative
territory.
- 20-Year supply and monthly trade balance data headline the local docket
tomorrow.
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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