July 08, 2024 04:56 GMT
Cash Bonds Slightly Weaker, Subdued Session, 5Y Supply Tomorrow
JGBS
JGB futures are holding weaker, -17 compared to the settlement levels.
- Outside of the previously outlined Cash Earnings, Trade Balance and Bank Lending data, there hasn't been much in the way of domestic drivers to flag.
- Cash US tsys are 1bp cheaper in today's Asia-Pac session after Friday’s strong post-Payrolls rally. Today’s move may reflect some profit-taking along with a reaction to yesterday’s French election result and news on the PBoC bond purchases. China government bonds are dealing 2-4bps cheaper.
- The PBoC will carry out temporary bond repurchase or reverse repurchase operations depending on the market situation during working days between 16:00 and 16:20.
- Cash JGBs are flat to 1bp cheaper, with the 5-7-year zone underperforming.
- The swaps curve has bear-steepened, with rates 1-2bps higher. Swap spreads are wider.
- Tomorrow, the local calendar will see M2& M3 Money Stock data alongside 5-year supply.
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