Curve Twist Steepens, Futures Back To Flat

Futures operated in a contained range in the grander scheme of things, failing to challenge the extremities witnessed in the overnight session during the Tokyo morning, with gyrations in U.S. Tsys in the driving seat for the most part, outside of the early super-core CPI-related blip lower, while weakness in the longer end of the JBG curve became more pronounced as the session wore on. JGB futures hit the lunchbreak +2, while cash JGBs were 1bp richer to 4bp cheaper as the curve twist steepened. The swap curve also twist steepened, with swap spreads generally narrower outside of 10s.