Curve Twist Steepens, Shaking Off Impact Of North Korean Missile Launch

The lack of damage surrounding the well-documented North Korean missile launch, which crossed Japanese airspace, along with an uptick in equities and some pre-auction concession ahead of this afternoon’s 10-Year JGB supply, has weighed on the longer end of the JGB curve.

• This has resulted in some twist steepening, with the major cash benchmarks now 2.0bp richer to 4.5bp cheaper on the day, as the curve pivots around 10s and 7s continue to outperform.
• JGB futures accordingly deal off of best levels after failing to breach their overnight high, dealing +31 at the lunch break.
• The aforementioned round of 10-Year JGB supply headlines this afternoon’s domestic docket.