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Twist Steepening Creeps In

JGBS

Nothing to really add to our earlier comments re: JGBs, with JGB futures continuing to nudge away from early Tokyo lows as we worked through the Tokyo morning, leaving the contract +5 at the lunch bell.

  • Meanwhile, cash JGBs run 1bp richer to 2bp cheaper, with some twist steepening creeping in, in sympathy with Friday’s move in U.S. Tsys, even as the Tsy curve has twist flattened a touch to start this week (albeit not reversing Friday’s twist steepening). 7s outperform on the curve on the bid in futures, with the curve pivoting around 20s.
  • In local news, RTRS sources noted that 2-Year JGB issuance will increase by Y100bn during the current FY, along with a boost for 6-month bill issuance, as part of the government’s plan to fund its latest fiscal support package.
  • 10-Year JGBi supply is due shortly.
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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