Flattening Extends

The early flattening extended as we worked our way through the Tokyo morning, with 40s richening by ~7bp on the day.

• There hasn’t been anything in the way of notable headline flow to de-rail the move, with the previously outlined tweaks in the BoJ’s quarterly Rinban plan remaining at the fore.
• Futures have stuck to a narrow range, nudging higher during the morning session, but ultimately failing to challenge their overnight session high, hitting the lunch bell +23.
• There isn’t much in the way of domestic risk events to note during the remainder of Monday’s session, which will leave participants looking to cross-asset gyrations and setup ahead of tomorrow’s 10-Year JGB auction.