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Futures Give Back Some Of Overnight Uptick, Belly Leads Weakness In Cash

JGBS

Weakness in JGBs has been evident since the Tokyo re-open, as domestic participants adjust to the overnight move in futures, and fade the uptick witnessed in after hours trade. Cash JGBs run little changed to 3.5bp cheaper, with the 5- to 7-Year zone leading the weakness. Futures have given back some of their overnight gains to last trade +18. The long end has lagged the weakness in the belly, even in the presence of an impending liquidity enhancement auction covering off-the-run 15.5- to 39-Year JGBs.

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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