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Futures Heavy, Belly Soft

JGBS

The belly has led the way lower in the cash JGB space (much like what has been witnessed in the remainder of the global core FI markets post-FOMC), with 7s cheapening by ~2.0bp. Futures last -27, adding to the post-FOMC losses witnessed in overnight trade.

  • Local headline flow has been light, with confirmation of the previously outlined speculation re: the evolution of Japan's broader COVID restrictions (rollbacks of some restrictions in Tokyo & 6 prefectures through July 11, although restrictions in Okinawa look set to be rolled over to cover the same horizon). PM Suga is set to give an address on COVID matters this evening.
  • National CPI data and the latest BoJ monetary policy decision headline locally on Friday (expect our preview re: the latter to be published during the London morning).
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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