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Early Steepening Observed On ‘Catch Up,’ Conflicting Headline Inputs Observed

JGBS

Friday’s bear steepening impulse in U.S. Tsys is making its presence felt in early JGB trade, with a similar, albeit more modest, move seen, as cash JGB yields run flat to 3bp higher across the curve. JBH3 showed below its overnight base at the Tokyo re-open, before catching a bid to last trade -23.

  • Firmer than expected domestic PPI data probably helped the early cheapening.
  • However, the previously outlined weekend comments from Japanese PM Kishida and BoJ’s Takata may have limited losses in JGBS.
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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