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JGBs slipped in the afternoon session as.......>

JGBS
JGBS: JGBs slipped in the afternoon session as Tsys moved lower and the latest
liquidity enhancement auction for JGBs with 1-5 Years until maturity experienced
a softer bid to cover ratio than the prior.
- Futures last trade 6 ticks worse off at 150.82, off of the 150.77 low.
- The cash curve is steeper in the main, although 5-Year paper has
underperformed & 3-Year paper has recouped the bulk of its pre-liquidity
enhancement auction weakness.
- Modest JPY strength & a softer Nikkei 225 have leant a degree of support to
JGBs.
- Swaps have narrowed vs. JGBs. excluding the super-long end.
- Although technical bulls would have taken comfort from yesterday's close above
the 55-DMA (150.85), futures couldn't top the April 12 low (150.95). Bears now
need a close below the 55-DMA to ease immediate bullish pressure.
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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