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Local Reaction To Broader Cheapening Eyed

JGBS

The broader core FI impetus dragged futures lower in overnight trade, leaving the contract -8 come the close of post-Tokyo dealing.

  • Political considerations continue to dominate local news flow (see our earlier bullet: JAPAN: Gov't Eyes Oct 4 Diet Session To Pick PM, List Of Contenders Continues To Take Shape, for more details), although there hasn't been much in the way of market impact re: JGBs in the wake of the recent political upheaval.
  • Elsewhere, the Yomiuri has suggested that the Japanese government is planning to gradually ease its COVID limitations from October.
  • Wednesday's local docket will see the Q2, F GDP print and monthly BoP release, in addition to the latest round of BoJ Rinban operations, which will cover 1- to 3- and 5- to 10-Year 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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