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The results of the new 20-year Japanese........>

JGBS
JGBS: The results of the new 20-year Japanese government bond auction on Tuesday
were stronger than expected, triggering short-covering on September 10-year bond
futures. The 10-Year sector initially fell slightly as the strong auction demand
prompted buying in longer maturities, pushing buyers down the yield curve but
the move eventually prompted buying in shorter maturities.
- The bid was supported by the carry and roll in the sector, as well as some
doubt about corporate bonds in Japan, there is chatter that at these levels yen
could hurt earnings next quarter which was seen CDS rise.
- The tail dropped to 0.03 from 0.08, the smallest of 2017 so far. 
- Cover at the auction rose to hit the highest level since January 2014.
- Curve has flattened post auction with belly more resistant to the buying in
cash ahead of the enhanced liquidity auction on Thursday.

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