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Long Date Swap Receiving Supports

JGBS

JGB futures have drawn support from the curve flattening evident in cash JGB trade during the Tokyo morning, with the contract hitting the lunch break +5 vs. Tokyo settlement levels. In terms of the bull flattening witnessed in cash trade, it looks like paying in super-long swaps has been the driving factor, with 30- and 40-Year swaps tighter vs. their JGB equivalents. There has been a lack of macro headline flow, and the aforementioned round of swap receiving looks to have offset any U.S. Tsy/20-Year JGB supply related 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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