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The JGB market traded in confined conditions...>

JGBS
JGBS: The JGB market traded in confined conditions yesterday, as the latest
10-Year auction passed smoothly, allowing the sector to outperform.
- US yields fell on Thursday on trade war worry, as the belly led the way
unwinding earlier moves seen on firm US economic data.
- Focus today will fall on the BoJ's Rinban operations in the 1-10 Year buckets
following Wednesday's trimming of the super-long operations.
- Barclays suggest that "with US bonds extending their gains overnight, today
could see buyers take the upper hand in the JGB market, led by futures, driven
by risk-off flows and favourable supply and demand conditions. The BoJ is
scheduled to hold buying operations for 1-5y and 5-10y issues. Given the strong
JPY, we believe the sizes of those operations are likely to be unchanged."
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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