10-Year Yields Not Budging

JGBs were little changed to 1.5p richer during morning trade, although 10-Year JGB yields remain pinned to the 0.25% level, even with the BoJ pledging to defend the top of its permitted -/+0.25% trading band over the coming days. JGB futures held on to some of their overnight gains, hitting the lunch bell +14, although pressure from the latest downtick in U.S. Tsys (taking place during the Tokyo lunch break) may apply some pressure to JGBs in early afternoon dealing, with the earlier rounds of cheapening pulling the contract further away from its overnight peak. A liquidity enhancement auction for off-the-run 15.5- to 39-Year JGBs headlines the domestic docket this afternoon.