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Futures Pare Overnight Losses

JGBS

JGB futures have pared most of their overnight losses to last trade -7, with buying evident ahead of today’s pre-announced BoJ fixed rate operations (as the Bank looks to defend the upper end of its permitted 10-Year JGB yield trading band). Note that 10-Year JGB yields have operated just above 0.250% for most of the session thus far. The cash JGB curve has steepened, with the major benchmarks running little changed to 3bp cheaper. 40s provide the weak point on the curve, with concession being built in ahead of this afternoon’s 40-Year JGB auction. Meanwhile, more focus continues to fall on JPY matters.

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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