Cash Bonds Dealing Mixed, MoF Considering Shorter Maturity Issuance

JGB futures are lower at 143.86, -9 compared to the settlement levels.

• According to MNI’s technicals team, key resistance for JBU4 remains at 145.95, the Mar 28 high. A break would signal the scope for a climb towards the bull trigger at 147.74, the mid-January high. The bounce off late May lows has called into question the sustainability of the bear trend this year, despite the contract recently trading through key support at 143.44, the Nov 1 low. This exposes 141.65, a Fibonacci projection.
• Outside of the previously outlined April BoJ Meeting Minutes and Trade data, there hasn't been much in the way of domestic drivers to flag.
• (Bloomberg) Japan’s Ministry of Finance is weighing a plan to shift more of its bond issuance to shorter maturities. (See link)
• US markets are shut today for the Juneteenth holiday.
• Cash JGBs are dealing mixed, with futures linked 7-year the underperformer. The range of yield movements are bounded by 2bps lower (30-year) to 1bp higher (7-year). The benchmark 10-year yield is 0.7bp higher at 0.949% versus the cycle high of 1.101%.
• The swaps curve has bear-steepened, with rates flat to 2bps higher. Swap spreads are mostly wider.
• Tomorrow, the local calendar will see weekly Internation Investment Flow data alongside 5-year supply.