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A flurry of activity in early Tokyo trade......>

JGBS
JGBS: A flurry of activity in early Tokyo trade really defined the session.
- JGB futures broke lower in what looked to be a technically driven move,
extending on their overnight leg lower. The contract last trades 31 ticks worse
off vs. settlement, 13 ticks off lows.
- Bear steepening was evident in cash trade, with large swap flows observed
during the aforementioned move lower in futures.
- The 5-/30-Year spread sits ~14bp steeper than it did at the close of play on
Thursday. Remember, BoJ Governor Kuroda's well documented interview with the
Nikkei was released on Friday. 10-Year yields now trade at -0.224%. Both of
these developments will please the BoJ.
- 5-Year supply and the quarterly BSI survey headline the local docket on
Wednesday.
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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