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Curve Steeper, Futures In Narrow Range

JGBS

The cheapening impetus from U.S. Tsys was felt in the JGB space, with benchmark JGBs running little changed to ~1.5bp cheaper come the end of morning trade. 5s lagged the wider sell off, while the super-long end of the curve led the way lower. JGB futures were 8 ticks softer on the day at the break, off worst levels of the session.

  • Most of the local focus has fallen on the latest raft of policy maker communique re: FX matters. On that front, Japanese Finance Minister Suzuki reiterated the need for vigilance when it comes to monitoring FX rates, presenting some indecision when it came to the net impact of the recent JPY weakness. Elsewhere, there was a more guarded tone from BoJ Governor Kuroda re: JPY weakness, with a particular focus on the speed of moves and impact that such moves can have on different sectors of the economy (although he did ultimately reaffirm the overall net positive impact of a weaker JPY on the Japanese economy, noting that it is still “basically positive overall”)
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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