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Belly Cheapens, Wings Outperfrom

JGBS

JGB futures a touch lower in early Tokyo trade, to last print -3 vs. settlement, with the wings of the curve outperforming again in cash trade (much the same as yesterday's Tokyo morning), while 7s cheapen.

  • Local news flow has generally been light outside of the previously noted comments from the MoF re: the JPY. On the local data front retail sales topped expectations, although still fell in Y/Y terms.
  • It will be interesting to see if long end demand holds up (as a reminder, x-ccy basis swaps suggested that foreign investors may have driven yesterday's curve flattening).
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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