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Free AccessJGB futures pulled back overnight, alongside...>
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.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.