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JGB's went into the lunch break higher, but....>

JGBS
JGBS: JGB's went into the lunch break higher, but off high levels of the
session, futures up 6 ticks at 150.40. 
- MNI sources note that a theme this week has been foreigners selling JGB's and
hedging in swaps. This trend looks to be reversing slightly today after dovish
comments from BoJ Governor Kuroda at Davos and a slight miss in Japanese CPI,
evidenced by a tightening in LCH/JSCC spreads in the long end.
- Domestic accounts have been buyers of JGB's, though with yields still hovering
below touted dip buying thresholds this trend could abate if there is a renewed
sell off, putting pressure on the BoJ if 10-Year yield breaches the 0.10% level.
10-Year yield last down 0.2bp at 0.083%.

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