JGB futures finished the Tokyo morning a little shy of best levels after the previously outlined extension through overnight session highs, leaving the contract +44 at the lunch bell. Cash JGBs are flat to ~7bp richer, with the early flattening extending, aided by receiver side flows in swaps as swap spreads sit flat to tighter on the day.

• Local headline flow remains subdued, with continued focus on the fallout from the failure of SVB. Note that Tsys have firmed during the Tokyo lunch break after Goldman Sachs changed their Fed call to no hike next at next week’s meeting. This could filter through into JGB price action in early afternoon trade.