2Y Yield Hits Highest Level Since 2011

At the Tokyo lunch break, JGB futures are holding slightly lower, -8 compared to the settlement levels, after paring earlier losses.

• There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined household spending and current account data.
• Leading & Coincident Indices are due later, along with results from today’s BoJ Rinban operations covering 1- to 10-year JGBs.
• (Bloomberg) -- The Bank of Japan excludes 10-year climate transition bonds from its debt-purchase operations after buying nearly half of its outstanding amount in the previous operation.
• (DJ) BoJ may raise rates to 2% over the next decade, says Hubert de Barochez, senior markets economist at Capital Economics. (See link)
• Cash JGBs are cheaper, with the 20-year zone as the underperformer (+2.2bps). The benchmark 10-year yield is 0.8bps higher at 0.739% versus the February high of 0.772%.
• The 2-year JGB yield rises to 0.2% for the first time since 2011.
• Swaps are little changed, with rates 0.5bp lower to 1bp higher. Swap spreads are mostly tighter.