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Futures Softer, Curve Twist Steepens

JGBS

The broader weakness in global core FI markets has weighed on JGB futures during the Tokyo morning, with the contract last printing 9 ticks lower on the day. The cash curve has seen some twist steepening, with 10s back to the 0.01% marker in yield terms. The shorter end of the cash curve trades ~1.5bp richer, while 40s run ~1.0bp cheaper.

  • The combination of the global core FI impulse, a softer JPY and a modest uptick for domestic equities has negated any risk-off flows for the longer end.
  • There has been a lack of notable domestic news flow, outside of confirmation of the previously outlined story re: the expansion of the quasi state of emergency to cover a further 8 prefectures.
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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