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Flat Start For Futures, Cash JGBs Richen

JGBS

JGB futures hold a tight range in early Tokyo trade, last dealing in line with late overnight levels, -3 vs. yesterday’s settlement. Meanwhile, cash JGBs run 1-5bp richer, with 10s outperforming on the curve. The move is JGB-driven, with swap spreads wider across the curve, as swap rates run 0.2-0.7bp lower on the day. Domestic headline flow remains limited, leaving participants to ponder the broader macro situation, while looking ahead to today’s BoJ Rinban operations (covering 3- to 25-Year paper), which come in the wake of the recent tweaks observed in the 10+-Year zone purchases.

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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