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Futures Bid, Local Politics Dominates Weekend Headlines

JGBS

JGB futures added 46 ticks in the final overnight session of last week, going out just shy of session highs, even as U.S. Tsys pulled back from their own recession worry-induced best levels.

  • There hasn’t been much in the way of meaningful macro headline flow to digest over the weekend. With TYU2 trading around late NY levels we may see a modest pullback in JGB futures at the re-open, although it is hard to assess cross-market dynamics in the current environment.
  • Local news flow continues to focus on the upcoming upper house elections, with PM Kishida’s LDP set to retain a majority alongside its junior coalition partner, the Komeito Party.
  • There isn’t much in the way of tier 1 risk events to shape JGB trade on Monday, with monetary base data and the latest round of BoJ fixed rate operations due.
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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