Early Uptick Unwound

The global impulse (see weaker U.S. Tsys) has helped unwind the initial bid linked to the previously flagged Nikkei article which implied that current BoJ Deputy Governor Amamiya is the favourite to succeed outgoing Governor Kuroda, with Finance Minister Suzuki’s comments (noting he hasn’t heard such discussions, although he conceded that he is “out of the loop” on those matters) and the continued focus on BoJ policy normalisation (as was highlighted in the Nikkei article) also aiding the unwind of the move. That leaves JGB futures -31, ~20 ticks off early Tokyo highs, while cash JGBs are little changed to ~3.5bp cheaper across the curve with the 7+-Year zone coming under the most pressure (Excluding 10s, which are little changed hovering just below the upper boundary of the BoJ’s YCC parameters).