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Onshore Markets Return, BoJ Buying Ops & PMI Revisions Out

JGBS

Japan markets return today after being shut since last Friday. JGB futures finished up at 144.50, +.21 post the onshore close on Thursday. This leaves us within recent ranges.

  • Given the upside bias to US Tsys, particularly in and around the NFP miss, this may impart an early positive bias for JGB futures.
  • Also note we have BoJ outright purchases today for the 1-3yr, 3-5yr and 10-25yr tenors.
  • Ahead of that the Jibun Bank PMI revisions will print for April (for the services and composite PMI readings).
  • To recap, JGB 10yr yields finished up close to 0.90%, the 20yr near 1.69% on Thursday. The 10yr swap was last around 0.97%.

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