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Broader Pressure Weighs

JGBS

While there was little in the way of headline flow to wet the whistle for JGB traders, the broader weakness witnessed in core FI markets dragged the space lower. Futures went out -25, just off worst levels of the day, with weakness evident into the close.

  • Cash JGB trade saw some bear steepening, with 10-Year yields now at 0.140%.
  • The JSCC/LCH spreads hold signs of foreign payers driving the moves in longer dated swaps.
  • The BoJ left the size of its 1-10 Year Rinban operations as they were, with mixed offer/cover ratios, although the ratios didn't provide anything in the way of meaningful swings the uptick in the 3-5 Year metric may have applied some pressure during the afternoon.
  • Tokyo CPI, the labour market report, retail sales and preliminary industrial production data headline the local docket on Friday. 2-Year JGB supply is also due.
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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