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Firm In Early Tokyo Dealing

JGBS

JGB futures have unwound their overnight losses and more, with the contract last +3 vs. Friday’s Tokyo settlement, supported by the presence of the latest round of BoJ Rinban operations (with alterations to the Rinban outlined in last week’s Q2 Rinban plan). Note that the cash JGB curve has seen richening of 0.5-2.0bp across all of the major benchmarks, with 20s leading the bid.

  • A very modest downtick in domestic equities is probably providing further support.
  • Swaps have lagged the move in cash JGBs, with swap spreads nudging wider across the curve.
Focus now moves to the result of the BoJ Rinban operations, with the breakdown becoming available during the Tokyo lunch break.
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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