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Steepening Extends

JGBS

Little to really add to our early commentary, with the steepening impetus extending a little as the major JGB benchmarks run 0.5-3.5bp cheaper across the curve. We have suggested some pre-auction jitters may be apparent ahead of Friday’s 40-Year JGB supply, with tomorrow’s national holiday not helping liquidity. JGB futures hit the bell -7, holding a tight range.

  • Local news flow remains light, with Chief Cabinet Secretary Matsuno playing down news reports which pointed to the likelihood of a fairly imminent cabinet reshuffle from PM Kishida, given the recent headwinds for his approval ratings/loss of 3 ministers.
  • The liquidity enhancement auction for off-the run 1- to 5-Year JGBs headlines the domestic docket this afternoon.
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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