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Holding The Bulk Of Early Gains, Ueda In Driving Seat

JGBS

JGBs hit the lunch break and have consolidated the bulk of their morning gains, albeit operating off best levels after the reaction to Ueda’s initial comments re: the lack of a need for an imminent policy adjustment was tempered by a hat tip towards the conditions that would facilitate the need for such a move down the line. All in, Ueda’s comments have been pretty balanced, as we suggested may be the case pre-hearing. JGB futures are +21. Cash JGBs are flat 2.5bp richer, with 20s leading, while swap rates are 0.5-5.0bp lower, leaving swap spreads tighter in the main.

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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