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Curve Firmer & Flatter Into Month-End

JGBS

JGBs bull flatten in early Tuesday trade, aided by projections for comfortably larger than average month-end duration index extensions, while the potential for continued super-long end demand from the life insurer/pension investor cohort into FY end is once again noted. The major cash JGB benchmarks are running unchanged to 3bp richer. Meanwhile, futures have failed to push meaningfully through their own overnight high, with a brief and limited look above fading, leaving the contract +12.

  • Local data saw softer than expected preliminary industrial production prints, while retail sales readings were firmer than expected.
  • The upper house confirmation hearings of the government’s nominees for the BoJ Deputy Governor positions (Uchida & Himino) and 2-Year JGB supply provide the highlights on the local docket during the remainder of the session.
  • Today will see the BoJ offer 5-Year loans to banks via its pooled collateral operations, with the Bank also set to release its March outline of Rinban purchases after hours.
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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