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Futures Lead The Way Lower

JGBS

JGB futures have ticked lower in early Tokyo dealing to print -27 on the day, comfortably below its overnight base amidst spill over from the early weakness observed in core global FI markets.

  • Wider cash JGB trade has seen the curve bear steepen, with major benchmarks running 1.0-2.5bp cheaper across the curve.
  • Domestic headline flow has been light thus far, while elsewhere, a speech by BOJ Governor Kuroda at Jackson Hole on Saturday offered little by way of fresh insight, having pledged to continue easy monetary policy “until wages and prices rise in a stable and sustainable manner”.

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