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Off Cheaps, A Touch Steeper

JGBS

The Tokyo morning saw some weakness in the longer end of the JGB curve, which was perhaps linked to growing speculation surrounding a snap election and a fresh fiscal support package, with local press reports pointing to such matters perhaps playing out in September. The long end has now retraced some of the early weakness. Futures stuck to the confines of the overnight session's range, last -4 on the day. The latest round of BoJ Rinban operations revealed a moderation in the offer to cover ratios for the 1- to 3- and 3- to 5-Year buckets (vs. prev. operations), while the 5- to 10-Year bucket saw an uptick in the cover ratio.

  • There is little of note on the local docket on Thursday, outside of the BoJ's 2-day policy meeting getting underway.
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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