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Futures Cheapen further Overnight, BoJ Eyed

JGBS

JGB futures traded through their recent low during overnight trade, closing -10, as core FI markets continued to cheapen. Bears now eye a test of the psychological 150.00 level, with technical support located a little below there, in the form of the 0.5% 10-DMA envelope (149.90).

  • With bonds in cheapening mode, focus will continue to fall on speculation/expectations for the BoJ to protect the top end of its permitted 10-Year JGB yield trading band (0.25%), perhaps pre-emptively.
  • BoJ Rinban operations covering 1- to 5-Year JGBs and preliminary machine tool orders data headline the domestic docket on Wednesday.
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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