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Futures Back From Highs Overnight, Services PPI Due

JGBS

JGB futures added 11 ticks in the final overnight session of last week, although finished shy of best levels, aided by BBG sources outlining the potential for further policymaker support for U.S. banks, with the contract already back from best levels ahead of that news. Feedthrough into early Asia-Pac trade has seen U.S. Tsy futures pressured and e-minis further bid, which could apply fresh weight to JGB futures as Tokyo reacts to developments since Friday’s settlement.

  • Fiscal headlines generated the bulk of the attention over the weekend, with the junior ruling coalition partner, Komeito, reaffirming the rough cost outline of ~Y2.2tn re: the government’s upcoming fiscal support package for households.
  • Services PPI data headlines the domestic docket today.
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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