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JGBS

As is the norm, JGB futures drew the bulk of their overnight session impetus from moves seen in U.S. Tsys, finishing off worst levels, -7 at the close of post-Tokyo trade.

  • There hasn’t been much in the way of market moving domestic news flow, which will likely leave broader market moves and BoJ Rinban operations as the driving factors for the space in Tokyo hours. The Rinban will cover JGBs in the 3- to 25+-Year buckets.
  • Domestic prelim industrial production and retail sales data will also cross today.
  • Note that month-end extensions for the space are expected to be below average, based on the BBG fixed income indices.

Fig. 1: BBG Fixed Income Index Month-End Extensions

Japan Agg.Japan Agg. Tsy
Aug '22 Estimate0.040.07
Aug '210.060.05
Average0.100.11
Median0.050.05
Low0.020.00
High0.240.40

Source: MNI - Market News/Bloomberg

*Average, Median, Low & High data Is based off of data stretching back to Aug '19

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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