Free Trial

Cheaper At Lunch On A Light Data Day

JGBS

At the Tokyo lunch break, JGB futures are weaker, -43 compared to the settlement levels.

  • Outside of the previously outlined international investment flow data, there hasn't been much in the way of domestic drivers to flag.
  • According to MNI’s technicals team, the sharp rally in JGB futures earlier this month has confirmed a bullish reversal and in the process cleared a number of important resistance points. A continuation higher would pave the way for a climb towards 147.74, the Jan 15 high and a bull trigger. Any exhaustion of this bullish move would see momentum shift lower, initially targeting 143.57, the Jul 17 high. A move lower would likely be a correction.
  • Cash US tsys are 1-3bps richer, with a steepening bias, in today’s Asia-Pac session after yesterday’s sharp sell-off following stronger-than-expected data.
  • Cash JGBs are 1-4bps cheaper, with a flattening bias. The benchmark 10-year yield is 4.3bps at 0.882% versus the cycle high of 1.108%.
  • Swaps are mixed, with rates 2bps lower (7-year) to 2bps higher (40-year).

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.