Firmer, With Futures Leading The Move

JGB futures pull higher on the global worry that has been generated by the U.S. banking sector, leaving the contract +27, with yesterday’s losses in the contract fully pared at one point, before a tick away from best levels. Cash JGBs are little changed to 4bp richer, with 7s leading the bid on the move in futures. Receiver side swap flows have been seen across the curve, with 10s leading the move there and swap spreads generally flat to tighter. Marginally softer than expected domestic PPI data would have also helped the direction of travel, albeit at the margin. BoJ matters remain front and centre domestically, but participants need to keep an eye on global maters given the scope of the moves now observed in global markets.