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JGBs moved lower on Thursday, with futures.....>

JGBS
JGBS: JGBs moved lower on Thursday, with futures last trading at 150.88 (-5
ticks), with the cash curve notably steeper through afternoon dealing after the
latest liquidity enhancement auction for 15.5-39 Year JGBs was less than
encouraging as the bid to cover ticked lower, with the spread moving into
positive territory.
- The auction saw JGB futures knee-jerk to session lows, however that move has
now been unwound, while the super-long end continues to underperform in cash
dealing.
- JGBS were also pressured by the uptick in domestic equities.
- Swaps tightened vs. JGBs.
- Futures have moved back below the 21-DMA (150.90), with bears needing a close
below this level to gain breathing room and below 150.80 to shift focus back to
the 55 & 100-DMAs at 150.63-70.
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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