Firmer, Futures Trade Contained

JGB futures nudged higher in early Tokyo dealing, alongside the uptick in wider core fixed income markets, although the move has been limited by crude oil futures pulling back from worst levels and equities regaining some poise after e-minis showed lower in early Asia-Pac dealing, preventing a test of the contract’s overnight high. This leaves JGB futures +22 on the day, a little shy of early Tokyo highs. Cash JGBs run 1.0-2.5bp richer across the curve, with 7s leading on the back of the bid in futures. Note that the longer end of the curve has underperformed 7s by ~1bp, which may represent a degree of caution ahead of the impending round of 20-Year JGB supply, due this afternoon. Domestic headline flow has been limited at best.