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Futures Unwind Late Tokyo Rally

JGBS

JGB futures softened during overnight trade, with the impetus from the U.S. Tsy market at the fore. The contract finished just off overnight session lows, 10 ticks below Tokyo settlement levels, unwinding the late Tokyo rally in the process.

  • An Asahi interview with BoJ Governor Kuroda has been published, but contained nothing in the way of meaningful new information.
  • The monthly labour market report and retail sales data headline the local economic docket on Tuesday. 2-Year JGB supply is also due.
  • Fiscal Year end dynamics remain in focus in Japan, with outperformance in the super-long end of the cash JGB curve driving Monday's flattening move. Pension fund allocation plans and Japanese investor preferences re: global bond markets will be of interest in the coming weeks.
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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