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Stabilising Overnight

JGBS

JGB futures unwound early losses during overnight trade, eventually adding 2 ticks to Tokyo settlement as the belly of the U.S. Tsy curve remained bid. This came after a 30+ tick rally for JGB futures on Tuesday, which left some desks pointing to short covering flows from CTAs.

  • Local press reports have suggested that Tokyo area Governors may seek an extension of the COVID state of emergency that is currently in play across the region, with the story coming hot on the heels of Tokyo Governor Koike's scepticism re: the rate of contraction in COVID cases being substantial enough to lift restrictions.
  • There is little of note on the local docket on Wednesday.
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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