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Assessing Offshore Weakness, Liquidity Enhancement Auction Due

JGBS

An uptick in ECB rate hike premium and a rally in wider global equities applied some light pressure to JGB futures in post-Tokyo trade, with the contract going out just above worst levels, 15 ticks below its Tokyo close.

  • Onshore participants will assess these offshore gyrations at the Tokyo re-open, with U.S. Tsy futures holding near Tuesday’s lows. This comes after a notable round of twist steepening pressure on Tuesday, when 20+-Year JGBs came under notable pressure.
  • There hasn’t been much in the way of meaningful local news flow to digest since the Tokyo close.
  • A liquidity enhancement auction for off-the-run 1- to 5-Year JGBs headlines the domestic docket today.
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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