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Futures Unwind Overnight Losses, Super Long End Outperforms

JGBS

JGB futures have unwound their overnight losses, but the air has been a little thin above the 151.00 mark, with bulls failing to consolidate a shallow move above the figure.

  • •That left the contract +1 at the break, as it benefitted from the 10-Year U.S. Tsy yield dynamic witnessed since Friday’s close, in addition to confirmation of the elongation of Japanese border restrictions through February. Cash JGBs run little changed to ~1bp richer, with some light outperformance in the super long end of the curve.
  • •BoJ Rinban operations drew the following offer/cover ratios:
  • •1- to 3-Year: 2.15x (prev. 2.41x)
  • •5- to 10-Year: 2.14x (prev. 2.49x)
  • •The moderations in the offer/cover ratios may provide some incremental support for the space during early afternoon trade.
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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