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Market Looks To Test The BoJ

JGBS

JGB futures continued to struggle in overnight dealing, printing fresh cycle lows in the process, even as the BoJ announced daily fixed rate operations to defend the upper boundary of its permitted 10-Year JGB yield trading band (after receiving Y64.5bn of offers during Monday’s second round of fixed rate operations). The contract shed 32 ticks come the overnight session close, finishing a little above worst levels, with participants still in the mood to test the BoJ’s convictions

  • Note that U.S. Tsy futures have firmed a little in early Asia trade, which could provide some support at the Tokyo re-open.
  • Labour market data & 40-Year JGB supply headline the local docket today.
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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