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Curve A Little Steeper

JGBS

Early cash JGB trade sees the curve come under steepening pressure, with Monday’s light bid in the long end of the U.S. Tsy curve (which has been partially unwound), providing little in the way of respite for super long JGBs.

  • The major cash JGB benchmarks run 0.5-2.5bp cheaper, with 10s capped by the upper boundary of the BoJ’s YCC settings.
  • Note that weakness in the long end may be related to some pre-auction jitters, ahead of Friday’s 40-Year JGB offering.
  • JGB futures operate around late overnight session levels, sticking to a tight range thus far.
  • Local headline flow remains limited, leaving adjustments to Monday’s wider market moves at the fore.
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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