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JGB Market Returns From Holiday

JGBS

Japan markets return today from yesterday's break. The US 10-year yield finished the NY session at 3.81% versus 3.83% when JGB futures closed ahead of the weekend. It was a muted NY session on Monday with US tsys respecting recent ranges with little follow-through on moves. Light volumes observed.

  • Bloomberg reports Brendan Murphy is shorting 10-year Japanese government bond futures on a wager that it’s only a matter of time before the nation’s central bank tightens monetary policy. (See link)
  • On the data front we have the tertiary activity index for May on tap later (market consensus is for a gain of 0.4%, versus 1.2% prior).
  • Local opinion polls show support for PM Kishida's cabinet is waning and close to historical lows. Problems with the national ID card and the release of treated Fukushima water were cited as concerns by voters polled over the weekend.
  • Later today sees June US retail sales and industrial production, May US business inventories, and the July NAHB housing market index.

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