Curve Twist steepens, Bucking Wider Trend

The JGB curve bucks Thursday’s global core FI theme of flattening, twist steepening as the long end continues to struggle in the wake of yesterday’s soft 20-Year JGB auction and in lieu of Thursday’s hawkish ECB guidance. That leaves the major benchmarks running 0.5bp richer to 3bp cheaper, with a pivot seen around 10s. it is harder to outline a driver for the modest richening observed through 10s. Futures have given up their very modest overnight gains to trade flat. The swap curve has seen some light steepening, resulting in wider swap spreads out to 20s, while 30+-Year swap spreads are a touch tighter. Local headline flow is very subdued.