Flat To Cheaper To Start

JGB futures hold a narrow range to start the week, dealing either side of unchanged during the first hour of Tokyo trade, without garnering meaningful traction either way. That leaves the contract -1. Cash JGBs are flat to 3bp cheaper, with the long end leading the weakness, while the 5- to 7-Year zone lags the wider sell off. Moves on the swap curve are generally more muted, with benchmark rates running 0.5-1.0bp higher.

• The minutes covering the BoJ’s Dec meeting were largely as expected from a headline perspective, at least when it came to the central tone. Still, it is interesting to note that there was a 30 to 40-minute recess of the meeting, at the request of a government official.
• Participants remain zeroed in on the aforementioned results of the BoJ’s 5-Year offering through its Funds-Supplying Operations against Pooled Collateral channel.