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JGB market participants retuned from their.....>

JGBS
JGBS: JGB market participants retuned from their elongated weekend, with futures
edging lower in what proved to be a fairly limited Tokyo morning, resulting in a
breach of the 50% retracement mark from April's rally.
- Move has extended through the morning lows in afternoon dealing, as the last
round of BoJ Rinban ops provided an uptick in the offer/cover ratios and wider
spreads for the 1-3 & 5-10 Year buckets. 7s underperformed on the curve all day,
suggesting futures were the driver of the belly's underperformance in cash.
- Super long swap spreads were wider, out to 10-Years were generally tighter.
- Cash earnings data headlines tomorrow.
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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