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Futures Little Changed Overnight, BoJ Trading Band Limits Eyed

JGBS

JGB futures were little changed overnight, closing 1 tick below settlement levels after the contract managed to show through Tokyo lows on several occasions.

  • Note that the proximity of 10-Year JGB yields to the upper limit of the BoJ’s permitted trading band (~0.24% at Monday’s close vs. the 0.25% upper limit) is limiting sell offs out to 10s.
  • Still, early Asia weakness in U.S. Tsy futures may result in some pressure at the Tokyo re-open/resultant action from the BoJ.
  • 5-Year JGB supply headlines the domestic docket on Tuesday, with PPI & bank lending data also due.
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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