Firmer & Flatter On Cross Market Impetus

The wider impetus surrounding core global fixed income markets in the wake of the previously outlined NRW CPI release out of Germany means that JGB futures are +3 ahead of the close of Tokyo trade, with the contract trading a little shy of best levels. The aforementioned bid in the wider core global FI space has resulted in some bull flattening of the JGB curve, with the major benchmarks running 1-3bp richer at typing. There wasn’t much in the way of idiosyncratic news flow to shape trade in the space, with the latest round of BoJ Rinban operations failing to provide anything in the way of meaningful market impact. Note that today’s rally leaves 10-Year JGB yields at 0.23%, 2bp off the upper limit of the BoJ’s permitted trading band. Tomorrow’s local docket is headlined by preliminary industrial production data and the release of the BoJ’s Rinban plan.