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Japanese bonds rally on hopes of less supply

Finance ministry survey appears designed to confirm that demand for super long-dated JGBs is low
The JGB market has been racked by volatility in recent weeks

Japanese longer-dated bonds rallied on Tuesday after the government took the rare step of canvassing primary dealers and other market participants for their views on issuance, raising speculation it may scale back supply.

The move by the Japanese finance ministry appeared designed to restore calm to a bond market that has been racked by volatility in recent weeks, with borrowing costs rising to record highs last week.

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