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Futures Extend Bid

JGBS

JGB futures were bid throughout the session, tracking the wider movements in core FI markets, with a rally in the JPY (on previously-flagged comments re: recent yen weakness from BOJ Gov. Kuroda and Japanese FinMin Suzuki) after the Tokyo lunch break accelerating the move higher, taking JBU2 above the 150 mark, with the contract printing +76 ticks at 150.20 last.

  • Cash JGBs run 2bp cheaper to 5bp richer across the curve, with 7s leading the way higher.
  • While USD/JPY has made fresh lows below 143.00 at typing in the wake of aforementioned comments, it is worth noting that there was little by way of fresh language deployed.
  • Monday will see preliminary data for machine tool orders headline the domestic data docket.

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