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Futures Stronger, Mid-Range, Mixed Data

JGBS

At the Tokyo lunch break, JGB futures are stronger but in the middle of today’s range, +12 compared to the settlement levels.

  • Outside of the previously outlined Capex and Company Profits data, there hasn't been much in the way of domestic drivers to flag.
  • The Jibun Bank Manufacturing PMI was revised lower to 50.4 in May from an initial reading of 50.5 but still exceeded the 49.6 recorded in April.
  • Cash JGBs are dealing mixed, with yield movements bounded by +/- 1.5bp. The benchmark 10-year yield is 0.1bp lower at 1.069% versus the cycle high of 1.101% set late last week.
  • Swaps are dealing slightly mixed too, with the 4-7-year zone outperforming. Swap spreads are mixed.

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