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The JGB space operated in a fairly limited.....>

JGBS
JGBS: The JGB space operated in a fairly limited fashion on Monday, ahead of a
holiday shortened week & in front of the FOMC MonPol decision on Wednesday.
- A slight uptick in the 5-10 Year bucket's offer to cover ratio in the latest
Rinban operations saw the sell side favoured in the latter part of the session,
although the stronger JPY & lower Nikkei 225 added support. The super-long end
remained firm heading in to FY end.
- Focus today will fall on the enhanced liquidity auction for old 10, 20 &
30-Year JGBs.
- The US Tsy curve bear flattened on Monday, although T-Notes finished around
the middle of the range.
- Barclays suggest that "today could initially see a bias toward correction in
the JGB market given the slight decline in US Tsys overnight and today's
liquidity enhancement auction for 5-15.5y issues in Japan, but we expect the
auction to clear smoothly and the market to remain firm amid risk-off sentiment
and favourable supply and demand into the fiscal year-end.
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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