Curve Twists Flatter

The JGB curve has twist flattened in early Tokyo trade, with the steep curve continuing to generate demand for super-long JGBs after the turn of the fiscal year, allowing 30s and 40s to richen modestly. Meanwhile paper out to 20 runs little changed to 1.5bp cheaper, with 7s leading the weakness based on the overnight downtick in futures. JGB futures trade -5. There hasn’t been much in the way of overt headline flow to drive the uptick from overnight lows in futures, although focus on the potential for imminent PBoC easing and continued geopolitical worry are two good candidates when it comes to drivers of the very modest uptick, especially with wider markets thinned out owing to the elongated weekend being observed in most of the major global financial centres.