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Futures Off Overnight Lows

JGBS

JGB futures have edged away from their overnight lows, although trading conditions remain inhibited, with the impending round of 5-Year JGB supply not helping market liquidity. There hasn’t been much in the way of local news to digest since the re-open, with cross-market impetus helping the contract to pare some of its overnight losses, hitting the lunch break -17 on the day. Cash JGBs out to 20s are within 0.5bp of yesterday’s closing levels, although the broader cheapening observed in the global fixed income space on Monday has seemingly facilitated ~1.5bp of cheapening for 30s and 40s, with some light steepening in play on the curve as a result.

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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