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JGB futures stuck to a very tight range in.....>

JGBS
JGBS: JGB futures stuck to a very tight range in the Tokyo morning, heading into
the lunch break 11 ticks below settlement levels, after being pressured
overnight as Monday's risk-on flows extended through NY hours.
- The inflation expectations side of the BoJ's Tankan survey was virtually
unchanged vs. the previous quarter.
- The Nikkei 225 trades back from early highs, but was still 0.3% better off at
the break.
- 10-Year JGB supply highlights the local docket today. 10-Year JGBs trade at
the richer end of their recent ASW & Z-spread ranges, looking particularly rich
on ASW. The recent bout of risk-off flows pressured the 2-/10-Year & 10-/20-Year
yield spreads to the lowest levels seen since '16, with both metrics sitting
just above their recent lows at writing.
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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