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Futures May Come Under Light Pressure Early On

JGBS

The early downtick in core global FI markets (Which has moderated from extremes), may apply some pressure to JGB futures at the Tokyo re-open, although weakness should be fairly limited. Note that the contract shed 9 ticks in the final overnight session of last week, with cheapening in the U.S. Tsy space in the driving seat.

  • 10-Year JGB yields finished Friday’s session at 0.23%, 2bp shy of the top of the BoJ’s permitted -/+25bp trading range.
  • There hasn’t been much in the way of meaningful domestic news flow to digest over the weekend.
  • Preliminary machine tool orders data and BoJ Governor Kuroda’s address at the BoJ branch managers meeting provide the highlights of the local economic docket on Monday.
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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