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The super-long end of the JGB curve has........>

JGBS
JGBS: The super-long end of the JGB curve has underperformed, while benchmark
yields out to 10-Years have edged lower, allowing the curve to twist steepen.
- JGBs had no reaction to the latest tweak in the BOJ's Rinban operations. To
recap, the 5-10 Year operations were cut by Y10bn to Y400bn, in line with the
size seen in yesterday's unscheduled operation.
- The fact that the yesterday's unscheduled operation had a fixed size & didn't
hold a fixed rate suggests that the BOJ may be trying to quell vol., not limit
the rise in yields at current levels.
- Futures have stuck to a much tighter range today, reclaiming the 150 handle.
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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