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Futures Can't Test Friday Lows, JGB Yields Tick Higher

JGBS

JGB futures remain within recent ranges in the first part of Monday dealing. The September future last 144.54, -.18 versus settlement levels.

  • We did have an early dip to 144.51, but we couldn't test sub Friday lows, just under this level.
  • Outside of the earlier Capex data, which point to positive Q2 GDP revisions (due next Monday), news flow has been light. US Tsy futures volume is very light ahead of the Labor Day holiday later.
  • In the cash JGB space yields have ticked higher, the 10yr back above 0.91%, while the 30 and 40yr tenors are up over 2bps in yield terms.

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