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JGB futures have edged higher this morning,....>

JGBS
JGBS: JGB futures have edged higher this morning, with some modest
outperformance in the super-long end of the curve, despite the upcoming 30-Year
supply, with the move coming on the back of yesterday's concession.
- Focus falls on the aforementioned 30-Year auction with most expecting it to go
well. The lack of recent adjustment in BOJ Rinban ops covering 30-Year paper
continues to support prices, with a low chance of reduced purchases observed
during September, as the BOJ has adjusted its Rinban for calendar effects.
Seasonality points to strong purchases of super-long JGBs in September as FYH1
comes to an end. On a relative value basis the sector looks slightly more
attractive than the 40-Year sector.
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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