Curve Twist Flattens, In Sympathy With Global Peers

JGBs come under some light twist flattening pressure in early Tokyo dealing, akin to the moves we flagged in U.S. Tsys & ACGBS, leaving the major benchmarks running 1.5bp cheaper to 1.0bp richer, pivoting around 20s. 7s provide the weakest point on the curve as futures move into negative territory. 10-Year JGB yields now operate ~6bp away from the peak of the band permitted under the BoJ’s freshly adopted YCC parameters. Softer than expected domestic wage data has done little to support the space. As mentioned earlier, immediate focus is on today’s BoJ JGB purchase operations.