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Belly Leads Offshore-Driven Rally, Local 20-Year Supply Eyed

JGBS

JGBs firmed in the Tokyo morning, with 7s leading the way, richening by ~2.5bp on offshore moves since yesterday's Tokyo close. Futures extended on their overnight gain/Wednesday's bounce from technical support, hitting the lunch bell 16 ticks above yesterday's closing levels. Swaps are unchanged to wider vs. cash JGBs.

  • Both local and broader headline flow has been somewhat limited.
  • Local press reports have pointed to Japanese PM Suga & BoJ Governor Kuroda meeting to discuss the impact of COVID on the Japanese economy and the resulting economic outlook, while RTRS suggested that the Bank's ongoing monetary policy was discussed.
  • This afternoon's 20-Year supply is front and centre locally (preview to follow).
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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