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Long End Weakness Extends Further

JGBS

There hasn’t been much to add in terms of domestic news flow/drivers for the JGB space, with the early weakness in the super-long end of the curve extending, leaving the major benchmarks flat to 8bp cheaper. Futures hit the break -51, with little in the way of technical support observed until the 21 Oct low, which, as we flagged earlier, is some ~90 pips away from prevailing levels in the contract.

  • A reminder that Tokyo is playing catchup to the cheapening observed in the wider core global FI space post-FOMC, as Japanese markets return from their Thursday holiday.
  • 10-Year JGB yields remain capped by the upper boundary of the BoJ’s YCC scheme.
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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