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Firmer, Led By Futures

JGBS

The super-long end of the JGB curve pared its morning losses and now sits flat to richer on the day in the wake of a well-received round of 20-Year JGB supply (see our earlier bullet for more colour on that matter). That leaves the major JGB benchmarks running flat to 5bp richer across the curve, with intermediates and futures operating a little off their Tokyo morning peak, and the super-long end lagging the bid which has been driven by futures.

  • Futures failed to test yesterday’s post-BoJ spike high.
  • Swap rates are lower across the curve, shedding 2-7bp, with 10s leading the move as swap spreads tighten.
  • On the wage front the latest RTRS survey revealed that “more than half of Japanese companies are planning to raise wages this year” with ”24% of the companies polled said they planned on across-the-board bumps in base salary along with regularly scheduled wage increases. Another 29% said they would carry out regular pay increases only, while 38% were undecided.”
  • Local headline flow saw reports of China partially resuming work visa issuance for Japan.
  • Looking ahead, CPI data and the latest round of BoJ Rinban operations headline Friday’s domestic docket.
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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