Firmer & Flatter, 10s Extend Post-JGB Move

JGB futures have breached their overnight session high, with lower terminal rate pricing across the major global central banks in the wake of the SVB collapse dominating price action, as well as Tokyo catch up to Friday’s wider market moves.

• The contract is +52 last, while cash JGBs run little changed to 6bp richer, flattening. 10-Year JGBs are printing around the 0.37% mark, also showing through Friday’s richest levels.
• Swap rates are matching to outperforming the moves in JGBs, resulting in flat to tighter swap spreads across the curve.
• The latest quarterly BSI survey saw a deterioration in the readings summarising the views of large firms, but global matters remain at the fore.