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Benefitting From Risk-Off Tone

JGBS

JGB futures benefited from the broader risk-off dynamic stemming from the discovery of a new COVID strain in Africa, with futures hitting the lunchbreak +11. Cash JGBs richened by 0.5-1.5bp during morning trade, with 7s (pointing to a futures-driven bid) and 40s (perhaps on a continued wind back in worry re: issuance requirements to finance the impending fiscal stimulus package) outperforming on the curve. On the issuance front, Uruguay will conduct a 3-/5-/7-/10-/15-Year multi-tranche round of JPY issuance, which is set to price on Thursday 2 Dec, while a multi-tranche round of corporate issuance from Rakuten priced this morning. There hasn't been much attention afforded to news reports pointing to PM Kishida pushing for a 3% rise in corporate wages across Japan. Participants still await formal details re: the issuance program surrounding the impending fiscal stimulus package, which should cross at some point this afternoon.

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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