A Touch Firmer In Tight Trade

There has been very little to note in the way of headline flow during the Tokyo morning, which has allowed futures to stick to the confines of the overnight range, hitting the lunch bell 1 tick above Tokyo settlement levels. Cash trade has seen the entire curve richen, with the 3- to 5-Year sector of the curve outperforming, as yields in that zone of the curve fell by 1.5bp. There is nothing in the way of conventional JGB supply due this week, with liquidity enhancement auctions covering the 5- to 15.5-Year and 15.5- to 39-Year buckets providing the only supply points of note. Cantor Fitzgerald have launched a multi-tranche round of 2-, 3- & 5-Year JPY issuance.