A Non-Committal Morning

JGB futures traded either side of unchanged during the Tokyo morning, with an early uptick fading as the wider core global FI space came under pressure. Still, the JGB space received at least some insulation from the proximity of 10-Year JGB yields to the upper limit of the BoJ’s permitted trading band (hovering around 0.24%). That meant that futures recovered from worst levels of the day to hit the lunch bell -2, while cash JGBs were little changed to ~0.5bp richer.

• In terms of domestic news flow, comments from Finance Minister Suzuki pointed to a need for vigilance when it comes to the monitoring of FX moves, which briefly weighed on the JPY crosses.
• Elsewhere, a BoJ official noted that Japanese wholesale prices in the FY through March rose at the fastest pace since records began (in the early 80s).
• Local PPI data for the month of March saw a slightly swifter than expected uptick in Y/Y terms, accompanied by an upside revision to the Feb print.
• 5-Year JGB supply headlines this afternoon.