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Weakness As Tokyo Reacts To Tuesday’s Wider Developments

JGBS

Overnight weakness extends as Tokyo reacts to the market moves and global data releases observed since yesterday’s local close, leaving futures -25 at typing. Initial technical support isn’t seen until the 1.0% 10-DMA envelope (145.13). The contract remains well above recent lows, although the overarching technical downtrend remains intact. 7s lead the weakness on the cash JGB curve, owing to the weakness in futures, cheapening by just over 2bp, with 40s the only benchmark trading richer on the session. Swap rates are higher across the curve, in a steepening move.

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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