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Twist Steepening Extends A Touch

JGBS

Little to really add to our early JGB remarks, with the twist steepening of the JGB curve and bear steepening of the swap curve extending a touch, while JGB futures hit the lunch break +4 after sticking to a tight range. Participants haven’t had anything in the way of meaningful headline flow to trade off, with their focus moving to next week’s BoJ meeting.

  • On the fiscal front, RTRS reported that “Japan's ruling bloc agreed on Friday to raise corporate, tobacco and disaster-reconstruction income taxes by some Y1tn to double military outlay to 2% of GDP by 2027, a draft annual tax-code revision draft showed on Friday.” Participants looked through this release, with the broader brush strokes of the tax policy tweaks already outlined.
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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