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JGB futures had a look below Tuesday's low.....>

JGBS
JGBS: JGB futures had a look below Tuesday's low in early trade Wednesday, but a
negative start for the Nikkei 225 (-0.7% at the break) lent support.
- Little reaction in the space to a strong 5-Year JGB auction, that had no tail,
and exhibited a much firmer cover ratio than the previous auction. Demand was
likely driven by attractive relative value proposition vs. 7-Year paper.
- Space then drew support from 3-Month Euro-Yen TIBOR fixing 4.4bp lower at a
new record low of 0.0300%, with yields out to 7-Years dragged lower and futures
moving to intraday highs before the move was unwound overnight.
- BBG & RTRS source reports suggested that the BoJ will cut its inflation
outlook at next week's MonPol decision, in line with broader expectations and
various other source reports in recent times.
- Focus today turns to an address from BoJ's Kuroda & Amamiya, as well as 5-10
Year Rinban ops.
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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