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The JGB curve bull-flattened on Tuesday,.......>

JGBS
JGBS: The JGB curve bull-flattened on Tuesday, aided by a well received 40-Year
auction and jitters over the Italian political situation, with JPY strength &
Nikkei weakness apparent.
- The aforementioned smooth passage of the 40-Year auction allowed the curve to
extend on the early flattening in afternoon dealing.
- Risk-off sentiment linked to political instability in Italy has allowed for
additional JPY appreciation in EU/NY dealing, with USDJPY last at 108.50. 
- Focus today will fall on the BoJ's Rinban operations covering the 5-25+ Year
buckets, as well as comments from BoJ Governor Kuroda.
- Barclays suggest that "today could see buyers take the upper hand, led by the
super-long sector, on perceptions of solid supply and demand driven by JPY
strength and equity weakness amid the downtrend in US and European yields on the
back of risk-off flows overnight."
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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