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Super-Long End Leads Modest Weakness

JGBS

Cash JGBs run little changed to 2bp cheaper across the curve in light of Monday’s wider weakness in core global FI markets. 30+-Year paper leads the move after Monday’s relatively aggressive twist flattening, which was a function of Friday’s tweaks to the BoJ’s Rinban plan.

  • 10s are little changed today, limited by their proximity to the upper boundary of the range permitted by the BoJ’s YCC mechanism.
  • JGB futures print -6, sticking to a narrow range thus far.
  • Local headline flow remains limited, with setup for 10-Year JGB supply and any macro headlines set to drive prices during the remainder of today’s morning session.
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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