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A sharp move lower in JGBs saw a brief.........>

JGBS
JGBS: A sharp move lower in JGBs saw a brief breach of the YtD lows for JGB
futures, which finished the morning session 20 ticks off of the lows.
- There was no particular fresh catalyst for the move, but the space has eased
since Kuroda suggested that yields would be allowed to fluctuate by around
double the amount that was previously prescribed in his press conference Tuesday
- Short positioning into the BOJ decision may have exacerbated the bid on
Tuesday.
- The latest BOJ Rinban ops saw the Bank leave the size of the operations
covering the 1-3 & 3-5 Year buckets unchanged. Looking at the breakdown of the
operations, the offer to cover ratio of the 1-3 Year bucket ticked up to 3.77
from 3.35, while the 3-5 Year bucket's offer to cover ratio rose to 3.01 from
1.93.
- JGB bears look for a close below the 02 Feb 2018 low (150.09) in futures.
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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