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Futures Near Recent Highs, Equity Risk Off May Keep Dips Supported

JGBS

JGB futures were supported on dips post the onshore close. We finished up at 147.16 for JBH4, +.14. Wednesday highs were at 147.20.

  • US Tsy futures sit off late Wednesday highs (last 112-28 for TYH4), but the risk off move seen in equities may support JGB futures in the first part of trade today.
  • In the cash JGB space, the 10yr yield closed yesterday at 0.556%, below the simple 200-day MA. 10yr swap rates last tracked near 0.766%.
  • On the data front today we have weekly investment flow figures.
  • Kyodo notes that Japan plans to issue ¥34.95t of new government bonds in fiscal 2024 (see this link).

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