Curve Steepens, Futures Operate Around Late Overnight Levels

Cash JGBs run little changed to 9p cheaper as the curve bear steepens, as 10-Year yields push back up to ~0.30%. JGB futures showed lower at the re-open but failed to test the overnight base, before recovering to sit a touch above late overnight levels, -32 at typing.

• Swap rates are 2.0-4.5bp higher across the curve, with swap spreads out to 5s wider, and tighter beyond that, outside of 10s, which are wider.
• Markets have looked through the minutes from the BoJ’s January meeting given that the BoJ has met again since (as is the norm).
• Meanwhile, comments from Japanese Finance Minister Suzuki attempted to play down any worry re: the Japanese banking sphere post-SVB meltdown as he pointed to ample liquidity at Japanese banks, although he flagged vigilance on the part of Japanese regulators.
• He also pointed to a need to discuss the government-BoJ inflation accord with incoming BoJ Governor Ueda, although said he would not pre-commit to any specific alterations on that front.