10-year JGB futures found some resistance at...>

JGBS: 10-year JGB futures found some resistance at the 151.15 level yesterday

and have edged lower to 151.12. Bulls need to overcome yesterday's highs to

target the Oct 20 peak at 151.18 and extend the broader rally. 10-year cash

yields sit at 8.8bps, just off Monday's lows.

 - Breakevens have failed to see the same kind of drop seen in the US but

Japanese 10-year real yields are still seeing upside pressure despite the drop

in nominal yields. 

- The US-Japan 10-year spread continues to reflect movements in US yields, last

at 296.3bps. The real 10-year spread trades near fresh cycle highs at 148.52bps,

largely explaining the yen's recent weakness.