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Cheapening Early On


JGB futures ticked away from their overnight base at the re-open, but have come under fresh pressure since, briefly showing below their overnight low as domestic participants react to Wednesday’s global core FI price action.

  • Meanwhile, cash JGBs run flat to 2.0bp cheaper, with a fairly parallel shift along the curve, excluding 10s, which remain capped by the BoJ’s YCC settings.
  • Local headline flow has seen familiar theoretic re: FX deployed by Finance Minister Suzuki, while trade balance data met wider exp.
  • Note that the latest round of weekly international security flow revealed only modest net selling of Japanese bonds on the part of international investors (for a second consecutive week), with international investor appetite re: a test of the BoJ’s will when it comes to defending its YCC settings seemingly diminished (at least from a flow perspective).
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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