Futures A Touch Cheaper, Cash Either Side Of Unchanged

Weakness in core global FI markets has biased JGB futures a touch cheaper, with the contract hitting the lunch bell -11, although yesterday’s after-hours tweak to BoJ fees for borrowing three on-the-run 10-Year JGBs (making shorting those lines more expensive) is probably providing some counter (albeit not as forceful as some believed may be the case). Cash JGBs run 1bp cheaper to 0.5bp richer as a result, with 7s providing the weakest point. Swap rates are 0.5-1.5bp higher, with the 5- to 20-Year zone leading the move, meaning swap spreads are biased a little wider on the day. Local headline flow remains limited, with focus squarely on the BoJ leadership plans and related knock-on impact on monetary policy.