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Steepening Observed

JGBS

JGBs came under some light cheapening pressure as the Tokyo morning session wore on, with the major benchmarks running flat to 3bp cheaper, as the curve bear steepened. 10-Year yields remained capped by their proximity to the upper boundary permitted under the BoJ’s YCC mechanism. 40-Year yields have registered a fresh cycle high, with 20- & 30-Year yields a touch shy of their respective cycle peaks, allowing the recent steepening theme to hold.

  • Futures hit the lunch bell -7, sticking to a very narrow range,
  • BoJ board member Adachi stuck to the BoJ’s central script, playing down any suggestions that the Bank should tighten monetary policy, while providing familiar overtures re: the JPY.
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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