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The final overnight session of last week saw...>

JGBS
JGBS: The final overnight session of last week saw JGB futures stick within the
range set in Friday's Tokyo session, after the cash space twist steepened in
Tokyo trade.
- The weekend saw Abe's ruling coalition claim victory in the upper house
election, as expected, but the group has seemingly failed to secure the two
thirds supermajority needed to change the constitution (namely the pacifist
section), that would have appeased some of the more nationalist members of the
ruling LDP Party. PM Abe has noted that the vote showed acceptance of his plans
to raise the sales tax and to open debate on amending the charter.
- Elsewhere, in comments made over the weekend BoJ Gov Kuroda said that he
"totally disagrees" with Modern Monetary Theory, which is now "fashionable, even
in Japan." He also pledged his commitment to central bank independence and
reiterated the BoJ's readiness to respond to slowdowns in price momentum.
- BoJ Rinban operations covering 1-10 Year JGBs provide the highlight of the
domestic docket during Tokyo hours.
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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