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Losses Pared On BOJ Bond Buying

JGBS

JGB Futures pared losses in recent trade after an announcement from the BOJ that they will conduct additional bond buying for 5-10 Year JGBs on October 4.

  • This leaves JB1 at 144.83, -0.13, the contract has recovered off its session low at 144.76 after ticking lower from opening levels through the session as spillover from US Tsys weighed.
  • The 10 Year Yield is unchanged at 0.76%, with other major benchmarks 1-3bps cheaper.
  • Looking ahead, the data docket is relatively light this week. Labor Cash earnings on Friday are the highlight.
  • On the supply side tomorrow we have a Y2.7tn 10 Year Bond Auction and on Thursday Y900bn of 30-Year JGBs will come to market.

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