Coiling Ahead Of Event Risk

JGB futures stuck to a tight range during the Tokyo morning, hitting the break 4 ticks above settlement levels. The cash curve twist steepened with some modest underperformance for the super-long end, perhaps aided by some light swap spread widening in the 30- & 40-Year tenors and a lack of BoJ Rinban purchases beyond the 25-Year mark. Local headline flow was light, with the latest round of BoJ Rinban operations seeing no change to the size of the purchases witnessed in each bucket, while the 1-10 Year purchases saw upticks in offer/ratio vs. their prev. rounds of buying, although the moves in the respective metrics were minor.