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JGB TECHS

(M1) Bullish Focus

AUSSIE 10-YEAR TECHS

(M1) New Multi-Month Highs

USDCAD TECHS

Clearing Major Support

AUDUSD TECHS

Sizeable Resistance Building

EURJPY TECHS

Needle Still Points North

JGBS
JGBS: The JGB curve has been subjected to some bear steepening, as super-long
paper underperforms, with 40-Year yields finishing the morning session 2.0bp
higher.
- JGB futures are ticking lower as a result, with little in the way of headline
catalysts apparent.
- A strong morning session for Japanese equities on the back of Wall St.'s
positive lead & a soft JPY (resulting in fresh YTD highs for USD/JPY) likely
explains at least part of the move, with JGB futures breaching yesterday's low.
- Stepping back, the softness in JGBs could be a result of traders unwinding
positions ahead of the release of the BOJ's JGB purchase plan for October, due
later today, which could prove key for the space after the adjustments made for
September to factor in calendar effects & trimming of longer dated purchases
(25+ Year paper) last Friday. Some are looking for further cuts to longer dated
purchases in October.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com