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Post-Auction Rally

JGBS

JGB futures rebound on the back of solid 20-Year JGB supply, after this morning’s concession-driven cheapening & steepening provided enough enticement for buyers to dip their toe into the water. Futures are back into positive territory after lodging fresh cycle lows during the Tokyo morning.

  • As a reminder, the smooth auction came against a backdrop of multi-year steeps on the curve, as well as appeal on the 10-/20-/30-Year JGB fly, in the wake of the recent buyers’ hiatus when it comes to super-long paper. The cash JGB curve is steeper on the day, but the long end is back from the previously outlined cycle cheaps flagged earlier, with the 1.00% yield level in 30s holding firm, for now. Benchmark JGBs across the curve sit little changed to ~2bp cheaper on the day at typing.
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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