Intriguing RV graphs: Impact of "US jobs data shock" on JGB market
Key points
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Market mood shifts dramatically following "US jobs data shock"; we examine impact on JGB market based on similar experience last year
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Last year, JGB yields declined (mainly in futures market) on diminished rate hike expectations, ASW spreads widened in super-long zone on risk aversion
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Meanwhile, some differences vs last year; downward pressure on yields could be more limited/temporary this time and reaction in super-long zone amplified
