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Futures followed their global peers higher,....>

JGBS
JGBS: Futures followed their global peers higher, to trade 12 ticks better off
at 151.02, as shorter dated paper (out to 5-Years) sold off in cash dealing, as
the belly and long end rallied. Super-Long swaps tightened although swaps
underperformed elsewhere. Outright 10-Year benchmark yields have hit the lowest
levels seen since November.
- The BoJ's 1-5 Year Rinban operations have passed smoothly, with steady offer
to cover ratios, as the 3-5 Year bucket's spread moved into negative territory.
- Japanese investors have, however, maintained their appetite for foreign bonds
with the second week of large Japanese buying of overseas debt at Y853.8bn,
taking the 4-week cumulative sum of net purchases to the highest level since
mid-January, according to the latest data from the MoF, while foreign investor
were sellers of JGBs in the most recent weekly data.
- Futures' recovery from the 200-DMA test that defined last week is now gaining
traction above the 21-DMA (150.92) with bulls now focused on a test of 151.13-19
where the Bollinger top, 2018 high and Nov monthly high are located. Bears now
need a close below 150.95.
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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