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Initial Moves Mostly Hold

JGBS

JGB futures haven’t really done much since out previous update, initially registering a marginal fresh session high, before ticking away from their morning peak as U.S. Tsys nudged away from best levels, ultimately hitting the lunch bell +10 vs. settlement. 7s still represent the firmest point on the cash JGB curve, benefitting from the bid in futures, while the wings have edged away from session cheaps. JPY trade has been much more notable. USD/JPY has shed over 100 pips as Tokyo FX dealers react to the potential for a slower, data-driven round of hikes from the Federal Reserve, with that particular move perhaps being exacerbated by short JPY positioning. 2-Year JGB supply headlines this afternoon’s docket.

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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