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Curve Under Twist Steepening Pressure

JGBS

Cash JGBs twist steepen, with the super-long end coming under some pressure in lieu of the weakness in the wider core global FI sphere on Monday and ahead of 30-Year JGB supply. Meanwhile, the twist steepening pressure could also be indicative of further unwinds of hawkish flattener plays into this week’s BoJ, given the lack of expectation for a fresh hawkish policy adjustment from the Bank. Cash JGBs are 1bp richer to 3bp cheaper, while JGB futures have edged away from their overnight/early Tokyo base to last print -9. Local headline flow remains subdued.

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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