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JGBS: Cash Bonds Little Changed After Strong 30Y Auction

JGBS
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JGB futures are currently -2 versus settlement levels. After an initial spike lower following stronger-than-expected cash earnings, futures quickly reversed course and drifted higher into the lunch break. They reached new session highs in early afternoon trading following a strong 30-year auction. However, the move proved short-lived, with prices now back close to flat.

  • Outside of the previously outlined cash earnings, there hasn't been much by way of domestic drivers to flag.
  • Cash US tsys are 2-3bp richer in today’s Asia-Pac session. Reminder: Open outcry and CME Globex trading session for interest rate products will have an early close of 1300 ET and 1315ET, respectively on January 9, 2025.
  • Cash JGBs are flat to 1bp cheaper across benchmarks. The benchmark 10-year yield is 0.9bp higher at 1.187% after setting a fresh cycle high of 1.19% today.
  • The 30-year is dealing 0.2bp higher at 2.34% after today’s strong auction, which delivered the highest cover ratio for a 30-year auction since 2020.
  • Swap rates are 2bps lower to 2bps higher, with a steepening bias.
  • Tomorrow, the local calendar will see Household Spending, and Leading and Coincident Indices.
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JGB futures are currently -2 versus settlement levels. After an initial spike lower following stronger-than-expected cash earnings, futures quickly reversed course and drifted higher into the lunch break. They reached new session highs in early afternoon trading following a strong 30-year auction. However, the move proved short-lived, with prices now back close to flat.

  • Outside of the previously outlined cash earnings, there hasn't been much by way of domestic drivers to flag.
  • Cash US tsys are 2-3bp richer in today’s Asia-Pac session. Reminder: Open outcry and CME Globex trading session for interest rate products will have an early close of 1300 ET and 1315ET, respectively on January 9, 2025.
  • Cash JGBs are flat to 1bp cheaper across benchmarks. The benchmark 10-year yield is 0.9bp higher at 1.187% after setting a fresh cycle high of 1.19% today.
  • The 30-year is dealing 0.2bp higher at 2.34% after today’s strong auction, which delivered the highest cover ratio for a 30-year auction since 2020.
  • Swap rates are 2bps lower to 2bps higher, with a steepening bias.
  • Tomorrow, the local calendar will see Household Spending, and Leading and Coincident Indices.