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Futures Into Negative Territory

JGBS

JGB futures now print in negative territory, with a lack of fresh upside catalysts apparent, while the lack of overt escalation surrounding the Russia-Ukraine situation is probably a source of downside pressure. The cheapening in super-long JGBs may give participants fresh ammunition to test the BoJ’s resolve re: the enforcement of its YCC programme after today’s fixed rate operation drew no offers to sell given yield dynamics in play since the operation was announced (even though various senior BoJ officials, including Governor Kuroda, have pointed to no change in policy settings until the Bank achieves its inflation goal). Note that 10-Year JGB yields currently sit at 0.22%. A reminder that a close above 0.23% seemed to be the trigger for the announcement re: the BoJ’s fixed rate operations.

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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