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Now hearing sell off in JGB's post............>

JAPAN
JAPAN: Now hearing sell off in JGB's post reduction in JGB purchases from the
BoJ has pushed yields higher across the curve, increasing attractiveness of
JGB's which accounts for the bounce in JGB's and yen strength.
- USD/JPY basis swaps still lower, -46.5bp in the 2-Year sector despite having
risen over the past month after hitting lows heading into year end on USD
demand. The low levels increase the appeal of JGB's for foreign investors.
- Also some talk that this is seen as a "tapering" move from the BoJ based on
recent economic strength which has exacerbated the JGB weakness/yen strength.

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