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A Little Flatter Into BoJ

JGBS

Local headline flow remains modest, leaving JGB futures to consolidate their early uptick, with the contract hitting the lunch bell +10. Cash JGBs are 0.5-2.5bp richer across the curve, with no expectation for changes in monetary policy settings come the end of today’s BoJ decision and Wednesday’s modest bid for longer dated U.S. Tsys perhaps providing some support to long end JGBs, resulting in bull flattening. The move lower in swap rates has lagged that seen in JGBs, leading to some swap spread widening across most of the curve.

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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