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Pressured By Tokyo CPI, 40-Year Supply Eyed

JGBS

JGBs are cheapening in early trade, with firmer than expected Tokyo CPI data applying the pressure. That leaves the major cash benchmarks 0.5-2.0bp cheaper, while futures are -15, extending on their modest overnight downtick.

  • Elsewhere, services PPI data was a touch softer than expected, while Japanese Finance Minister Suzuki once again pointed to a need for a perpetual plan re: financing the country’s defence spending plans, although stressed that no firm decisions had been made on that front.
  • 40-Year JGB supply provides the highlight of the Japanese docket ahead of 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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