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Futures Lead Early Cheapening

JGBS

Firmer than expected Tokyo CPI data sees JGB futures comfortably through their overnight base in early Tokyo trade, with the contract last -31, just off worst levels. Cash JGBs are little changed to ~2bp cheaper, with weakness in futures driving the move in 7s. Swap spreads are wider across the curve excluding 7s, which are a touch narrower, with a more conventional steepening move seen on the swap curve.

  • Outside of month-, quarter- & FY-end flows there is some focus on the pull lower in overnight repo rates, which registered all-time lows yesterday, with collateral scarcity ahead of the aforementioned month-, quarter- & FY-end front & centre there.
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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