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Futures Have Extended The Overnight Uptick, Rinban Operations Due

JGBS

JGB futures have extended the overnight uptick, +11 compared to settlement levels, in early Tokyo trade.

  • Jibun Bank preliminary manufacturing, services and composite PMIs for August printed respectively 49.7, 54.3 and 52.6 versus 49.6, 53.8 and 52.2.
  • Cash JGBs are mixed, with the benchmark 10-year yield 0.1bp higher at 0.667%, above BoJ's YCC old limit of 0.50% but below its new hard limit of 1.0%.
  • Swap rates are also mixed, with movements bounded by -0.7bp to +0.1bp. Swap spreads are generally tighter.

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