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JGB futures stuck to a tight range on..........>

JGBS
JGBS: JGB futures stuck to a tight range on Thursday morning, hovering around
the 100- & 200-DMA's, before moving higher in the afternoon as longer dated
paper outperformed on the back of an uptick in the bid-to-cover ratio in the
latest liquidity enhancement auction for 15.5-39.0 Year JGBs, reversing the
slight underperformance that had been noted in the super-long end in early
dealing. The 5-/30-Year spread finished around 0.7bp flatter on the day.
- The BoJ will conduct Rinban operations in the 10-25+ Year buckets later today.
- Barclays believe that "today could see buyers continue to take the upper hand
after the UST curve bull-flattened overnight. The super-long sector will likely
lead the way on perceptions of solid supply and demand."
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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