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Futures Extend Bid & Twist Flattening Deepens Into Close

JGBS

The twist flattening impulse continues to extend into the close after the firm pricing witnessed at today’s 40-Year JGB supply, leaving 40s ~12bp richer. The bid in the super-long end continues to support futures which operate around Tokyo session bests, last -14. A quick reminder that Dai-Ichi life have indicated a preference for repatriating capital from U.S. Tsys and other foreign bonds into super-long JGBs, which could have at least partially explained the strong pricing at today’s supply.

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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