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Twisting Flatter

JGBS

The curve twist flattens in early trade, with the most notable point of weakness being 7s, which trade 2.5bp cheaper as JGB futures look through their overnight base after initially firming a little at the re-open. The remainder of the major benchmarks out to 10s are little changed, with a modest cheapening bias, while 20+-Year paper is ~1bp richer. We haven’t seen anything in the way of notable headline flow since the domestic CPI release, and the early price action doesn’t indicate the need for any off schedule BoJ JGB purchases, in our opinion.

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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