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JGB's head into the close flat in muted........>

JGBS: JGB's head into the close flat in muted trade amid a lack of catalysts
during the session, markets focusing instead on the BoJ rate announcement
tomorrow. JGB futures last at 150.39, moving within a 6 tick range from 150.34
to 150.40. JGB futures moved to session highs in early on as the yen
strengthened over the US government shutdown and pushed Japanese stocks to
session lows. As the dollar recovered losses against the yen amid reports of a
vote in the Senate at 12pm EST on Monday, JGB's gave up their gains. The MOF
sold 5-15.5 Year debt in an enhanced liquidity auction, the sale drew decent
cover at 3.34 (prev. 3.13)
- There were some reports that the Japanese primary surplus target will be
pushed further back when the Cabinet Office releases the latest set of economic
forecasts this week. - Currently the estimated time frame is 2025 (pushed back
from 2020 when originally forecast), there are reports in the Nikkei Asian
Review that this will be reset to 2027.
- Yield curve mixed, seeing some flattening, there are some expectations that
Kuroda will take a dovish tone tomorrow. 10-Year yield -0.1bp at 0.083%.

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