March 13, 2023 04:33 GMT
Bid & Flattening Extends, 10-Year Yields Move To Lowest Since BoJ YCC Tweak
The previously touted second-order bid from the latest round of richening in U.S. Tsys became apparent from the get go in Tokyo afternoon trading, although the dynamic has slowed, as the momentum in the bid in Tsys has stalled out. That leaves JGB futures +61, while cash JGBS sit little changed to 10bp richer as the curve flattening develops further and receiver side swap flows aid the bid in JGBs (swap spreads flat to tighter). 10-Year JGB yields now sit at the lowest level observed since the BoJ’s surprise YCC tweak back in December (0.325%).