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Off Lows After Flurry Of BoJ Purchases

JGBS

The previously outlined flurry of BoJ Rinban and fixed rate purchases has allowed JGBs to move off of post-BoJ cheaps, however, the space is still comfortably lower on the day. 10-Year JGB yields are showing around 0.42% on BBG, after printing as high as 0.426% (vs. the BoJ’s new upper YCC tolerance band limit of 0.50%). JGB futures are now ~90 ticks off of lows, printing just shy of 150 ticks softer on the day, after failing to challenge cycle cheaps (based on a continuation chart). BoJ Governor Kuroda’s press conference is eagerly awaited.

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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