May 22, 2024 05:08 GMT
Bear-Steepener After A Poor 40Y Auction, FOMC Minutes Later Today
JGBS
JGB futures are weaker and at session lows, -4 compared to the settlement levels, in afternoon trading.
- There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined Trade Balance and Machine Orders data.
- Cash US tsys are slightly cheaper in today’s Asia-Pac session ahead of the release of the May Meeting FOMC Minutes later today.
- The cash JGB curve has bear-steepened following today’s lacklustre 40-year auction, with yields flat to 4bps higher. The benchmark 10-year yield is 1.5bp higher at 0.995%, a new cycle high.
- The 40-year yield zone is 2.0bps in post-auction trading and approximately 4bps higher on the day.
- The swaps curve has bear-steepened, with rates flat to 4bps higher.
- Tomorrow, the local calendar sees Weekly International Investment Flow, Jibun Bank PMIs and Machine Tool Orders data alongside BoJ Rinban Operations covering 1-10-year JGBs.
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