Firmer Still, BoJ Nears

JGB futures have continued their advance, looking to the wider risk backdrop and leaning into broader expectations for no change at today’s BoJ meeting. That leaves the contract up 65 ticks or so into the lunch bell, with nothing in the way of meaningful technical resistance observed until some way away from present levels, although momentum and technical trend indicators continue to point south.

• Cash JGBs run little changed to 6bp richer, with 7s leading owing to the bid in futures and 10s hovering just below the BoJ’s existing YCC cap.
• Swap spreads are tighter across the curve, excluding 7s, pointing to more hawkish positioning coming off the table (once again, aided by global market dynamics).