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Light Twist Steepening Seen, Fiscal & Issuance Matters Noted

JGBS

The cash JGB curve has been subjected to light twist steepening pressure this morning, with the previously outlined election results peeling back some layers of uncertainty when it comes to broader policy matters. JGB futures hit then lunch bell 7 ticks below Tokyo settlement levels, with focus now moving to PM Kishida's fiscal policy amendments and related issuance requirements (note that he previously pointed to the potential for a supplementary budget being drawn up as soon as November). Proximity to this afternoon's 10-Year JGB supply will also have added some weight to longer paper.

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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