JGBs Likely To Fall As Spanish Banks' Concerns Ease

JGBs are likely to open lower, as news that the EU was willing to lend Spain up to EUR100 billion to shore up its battered banking system is expected to ease the recent risk aversion, says UBS Securities senior strategist Atsushi Ito; he expects the yield curve to steepen in zones longer than 5 years. September JGB futures are tipped in a 143.40-143.65 band vs 143.59 at Friday's close. Monday is the final trading day for the lead June futures contract. The benchmark 10-year cash JGB yield is pegged in a 0.855%-0.875% range vs 0.845%.