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The JGB curve flattened this morning as the....>

JGBS
JGBS: The JGB curve flattened this morning as the super-long end outperformed
heading into today's liquidity enhancement auction for 5-15.5 Year JGBs. Futures
went into the lunch break 4 ticks higher at 150.89.
- Samurai issuance from Lloyds & Indonesia has now priced ahead of an expected
ramp up in volumes in June. JPY basis widened across the curve yesterday,
probably as a result of these deals.
- Futures' close above the 55-DMA (150.84) sees immediate focus back on the
150.95 resistance & Bollinger top. Bulls now look for a close above this level
to confirm initial focus higher, with daily studies in their favour. Bears now
need a close below the 55-DMA to gain breathing room and below the 200-DMA
(150.72) to shift attention lower.
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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