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Firmer Across The Curve, 10s Lead, Longer Dated Swaps Tighten

JGBS

JGB futures have built on their overnight rally with JBM1 now trading +21 on the day. Cash JGBs have richened across the curve, with focus on the offshore market impetus and then the local spill over. The 10-Year point outperforms, richening by 3.0bp, moving decisively below 5bp for the first time since late January. Long end swap spread tightening has been evident for a second day, with signs of foreign receiving showing up in the JSCC/LCH basis for 30-Year swaps. Broader news flow remains light. Locally, speculation in the local press re: spectators at the Olympics continues to do the rounds, while the latest quarterly BSI survey failed to impact markets.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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