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Higher But Away From Best Levels, BOJ Ops Up Soon

JGBS

JGB futures gapped higher at the open, but we off recent highs in latest dealings. We got to 144.68, but now sit back at 144.60, +.31.

  • There has been little spill over from US Tsys in the first part of trade, with steady trends evident. Levels wise for JGB futures, Apr 19 highs were 144.92, while late lows from the month were at 143.61.
  • In the cash JGB space, the 7 and 10yr yields are off by around 2-3bps at this stage. The 10yr was last under 0.88%. The 10yr swap rate was around 0.95%, off by 2bps as well. Shorter dated tenors are off in yield terms but by a lower amount.
  • The data for April PMI revisions were very modest. The services print at 54.3, versus an initial print of 54.6. the composite index came in at 52.3.
  • Coming shortly we have BoJ Rinban operations.

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