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Belly Outperforms, Swaps Lag

JGBS

JGB futures failed to gain any traction above the 152.00 psychological level, even with broader defensive flows in play. The contract last trades +2, just shy of 152.00.

  • Results from the latest liquidity enhancement auction for off the run 15.5-39 Year JGBs were firmer than the previous offering, as the tail and spreads narrowed, while the cover ratio nudged higher.
  • Cash trade saw 5s outperform on the day, with swaps generally wider vs. JGBs across the curve. The long ends of both the JGB and swaps curves generally underperformed.
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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