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Post-FOMC Catch Up Inbound

JGBS

Tokyo will play catch up to the post-FOMC cheapening witnessed in core global FI markets as Japanese markets return from Thursday’s holiday.

  • This adjustment is set to dominate the impact from local news flow, which was headlined by the latest round of North Korean missile launches, with JGBs set to be biased lower at the re-open.
  • That could result in off schedule/upsized BoJ Rinban operations and/or additional rounds of BoJ fixed rate operations as the Bank may be forced into defending its YCC settings.
  • It is also worth noting that market data vendors highlighted that Wednesday failed to deliver any crossing 10-Year JGB trades.
  • Weekly international security flow data and final services & composite PMI readings headline the domestic docket into the weekend.
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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