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JGB's head into the close lower, futures.......>

JGBS
JGBS: JGB's head into the close lower, futures last down 6 ticks at 150.87 but
way off session lows of 150.75 hit after the weak 10-Year auction.
- JGB's were on a downward trajectory from the open, with the belly seeing heavy
selling ahead of the 10-Year auction. Data was largely ignored from Japan, the
Japan Nikkei Services PMI fell to 51.2 from 53.4.
- The 10-Year auction was weak which sparked a sell off in futures, to session
lows of 150.75 before bouncing back to current levels. at 3.70x the coverage
ratio was the weakest since the auction on June 1, previous sale was 4.55x and
2017 average is 3.98x, tail widened to 0.05 compared to 0.00 at the previous
auction, low price at 100.35 fell below expectations.
- Yields higher, long end sales more subdued after heavy selling in the past
week after MOF plans announced. 10-Year yield last up 0.6bp at 0.047%. Swap
curve steepens, seeing some auction concession ahead of Thursday's auction,
5-Year sector also seeing some decent paying.

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