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Broader Themes Help Move Off Lows

JGBS

A lack of idiosyncratic factors meant that JGB participants focused on broader themes. The defensive flows evident in Asia-Pac equity indices during late Tokyo morning trade allowed JGB futures to pare a chunk of their overnight/early Tokyo losses, with the contract hitting the break 13 ticks below yesterday's settlement levels. Cash trade saw light underperformance in the 7-20 Year sector, which sits a little under 1bp cheaper on the day, while swap spreads have generally narrowed as the swap curve bull flattens.

  • Local data had little in the way of meaningful impact on the space, with 5-Year JGB supply set to headline this afternoon (preview to come shortly).
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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