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JGB futures pulled back overnight, alongside...>

JGBS
JGBS: JGB futures pulled back overnight, alongside core global FI, but the move
in the contract was relatively shallow.
- As a reminder, the contract surged on Monday, closing just shy of the freshly
minted all-time high as the global trade tumult & touted demand for cash JGBs
propelled the contract higher, while the curve bull flattened.
- 10-Year JGB yields ratcheted lower yesterday, closing at -0.264%, with
questions about what the BoJ will do re: JGB purchases front & centre. Many
believe that the recent run of JPY strength leaves the Bank's somewhat tied on
the matter.
- To recap, yesterday saw Malaysia confirm that it plans to issue a second round
of Samurai paper, with the aim of raising funds to repay debt & build
infrastructure. Elsewhere, U.S. President Trump said that he is not "at this
moment" considering fresh tariffs on imported autos & parts from Japan. Also,
local reports have suggested that Japan will seek Y25tn of funds for debt
service costs in FY20 (+1.6% Y/Y)
- There will be a liquidity enhancement auction for 15.5-39 Year JGBs today.
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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