Free Trial

Bull Flattening, Focus On US NFP Later Today

JGBS

At the Tokyo lunch break, JGB futures are holding richer, +17 compared to settlement levels, after dealing in a relatively narrow range. With the domestic calendar light (Monetary Base data as the only release), local participants have been sitting on the sidelines ahead of US Non-Farm Payrolls later today.

  • Cash US tsys have also been trading in narrow ranges in today’s Asia-Pac session. Currently, they are dealing ~1bp cheaper across benchmarks after being slightly richer earlier in the session.
  • (Bloomberg Intelligence) In several surprising comments, after the BoJ held policy in January, Governor Kazuo Ueda suggested he's preparing to end yield-curve control and negative rates sooner rather than later. How soon? There was no smoking gun. We are keeping to our baseline view that July is more likely than April, though the risks have risen significantly for an earlier move.
  • The cash JGB curve has bull-flattened, with yields flat to 4bps lower. The benchmark 10-year yield is 2.1bps lower at 0.684% versus the Nov-Dec rally low of 0.555%.
  • The BoJ Rinban Operations covering 1-10-year JGBs results have just been released. Analysis to come.
  • The swaps curve has slightly bull-flattened, with rates flat to 1bp lower. Swap spreads are wider.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.