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JGB futures have unwound the weakness they.....>

JGBS
JGBS: JGB futures have unwound the weakness they were subjected to in early
dealing, as risk on flows reversed, leaving the Nikkei 225 up a marginal 0.2%,
with a heavy start for Chinese shares the likely catalyst for the reversal.
- Yields trade unchanged to 0.4bp lower last.
- A RTRS sources piece has suggested that "the Bank of Japan is considering
tweaking its bond buying operations to allow the government debt market to
better reflect fundamentals, people familiar with the matter said, following
years of heavy central bank buying in the sector." The piece went on to note
that "several ideas are under consideration, such as reducing the frequency of
the BOJ's bond purchases or making slight changes to the timing of its
government debt purchases to encourage more trading activity between financial
institutions." The piece also stressed the BoJ isn't rushing to make the
aforementioned alterations.
- Wednesday's BoJ MonPol decision provides the key point of interest this week.
The issuance/BoJ Rinban schedule is light. 10-Year paper will be auctioned on
Thursday, with the BoJ set to buy 1-5 & 10-25+ Year JGBs tomorrow.
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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