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JAPAN

Japan To Observe Holiday

AUSSIE BONDS

Flattening Extends

JPY

Liquidity Sapped By Local Holiday

AUD

AUD Edges Lower After Volatile Wednesday

JGB TECHS

(Z1) Bearish Trend Condition

AUSSIE BONDS

U.S. Tsys Help Futures To Twist Flatten Overnight

JGBS
JGBS: Futures finished 4 ticks higher at 151.03, as the domestic curve
flattened, with yields on bonds from 7-Years out softening modestly on the day.
- JGBs pulled back from opening highs inspired by the Cohn/US-China trade
headlines as the Nikkei 225 briefly moved into positive territory.
- The BoJ left the amounts in today's Rinban operations steady. The offer to
cover ratio ticked higher in the shorter dated 1-3 Year bucket, it remained
steady in the 3-5 Year bucket & fell in the 10-25+ Year buckets.
- Incoming BoJ Deputy Gov. Wakatabe highlighted various ways in which the BoJ
could further ease policy, but said he has no pre-commitment to looser policy.
His fellow incoming Deputy Gov Amamiya offered little fresh insight.
- Last week's volatility has resulted in pressure returning to the 151.17-19
region where the Bollinger band top is situated. Bulls continue to look for a
close above 151.19 to initially target 151.51 2017 highs. The Bollinger band top
is the key concern for bulls with potential to limit follow through. Bears now
need a close below 150.89 to ease bullish pressure and below 150.47 to target
2018 lows.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com