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JGB futures went in to the lunchbreak 2........>

JGBS
JGBS: JGB futures went in to the lunchbreak 2 ticks higher at 150.89, as they
operated in a tight range.
- The cash space saw 3-Year paper underperform, with the bulk of the curve
moving lower despite JPY strength & a soft AM session for the Nikkei 225.
- Looking to the BoJ's Rinban operations the offer to cover ratio dipped notably
in the 1-3 Year bucket, the ratio was relatively stable in the 3-Year bucket,
while the 5-10 Year bucket saw the offer to cover ratio jump to 3.72 from 2.71
at the prior operation covering the tenors.
- From a technical perspective the recovery from 200-DMA tests that defined last
week appears to be in trouble with follow through lacking above the 21-DMA
(150.89). Bulls now need a close above 150.97 to confirm focus on layers of
resistance 151.15-19. The 150.85 support is key today. Bears now need a close
below this level to return focus to 150.55-150.73 where key DMAs are clustered.
Below 150.55 is needed to target 150.36 and then 150.08-09 where 2018 and Oct
lows are noted.
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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