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Futures To Multi Week Highs, Q3 GDP & BoJ Bond Buying Ops On Tap Today

JGBS

In post Tokyo trade, JGB futures spiked higher, getting to 145.20, before closing at 145.16, +.54. This is fresh highs back to mid Oct. It followed the sharp move higher in US Tsy futures post the US CPI miss.

  • Mid Oct highs in the JGB futures contract came in 145.63, which could be eyed on a further extension higher.
  • Outside of spill over from US Tsy moves, focus today will be on the Q3 GDP print. The market expects slightly negative headline q/q growth (-0.1% against a prior +1.2%).
  • Also note BoJ bond purchases in the 1yr to +25 yr tenor.
  • In the cash JGB space, the 10yr yield finished at 0.86% yesterday, the 10yr swap rate was under 1.04% last.

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