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JGBs On Back Foot Ahead Of 40-Year Debt Supply

JGBS

Overnight risk-on impetus pushed JGB futures below overnight lows at the re-open and subsequent recovery proved shallow. The contract ebbed off highs into the lunch break and finished the morning session at 152.09, 3 ticks below last settlement. Caution ahead of today's 40-Year JGB supply may have helped keep the contract in check. In cash space, JGB yields sit slightly higher across a flatter curve as we type.

  • Nomura wrote in a note that today's auction is expected to draw decent demand, owing to the attractiveness of current high yields.
  • On the news front, reports on Japan's coronavirus containment measures continue to trickle out. Local media outlets noted that the Tokyo metropolitan gov't will ask restaurants and other stores to close at 10pm at the latest for three weeks, starting this weekend. Tokyo Gov Koike will hold a press briefing later today.

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