Futures At Cheaps, Gov. Ueda On ECB Panel Later Today

In the Tokyo afternoon session, JGB futures are trading lower by 28 points compared to settlement levels. With a lack of significant domestic catalysts, it seems that the domestic market has been influenced by movements in US Treasury yields. In Asia-Pacific trade, cash Treasury yields have remained relatively stable across the major benchmarks after retracing their earlier gains.

• However, it is worth noting that there seems to be some follow-through selling following yesterday's 20-year supply, which saw a lower-than-expected cut-off price, a wider tail, and a lower cover ratio.
• The cash JGBs curve bear steepens led by the futures-linked 7-year zone (2.1bp cheaper). The benchmark 10-year yield is 1.6bp higher at 0.390%.
• The benchmark 20-year is 1.6bp cheaper at 0.974. The yield on 20-year debt advanced 1.5bp to 0.958% yesterday.
• Swap rates are higher across the curve with the 7-year zone leading (+1.4bp). Swap spreads are wider out to the 5-year zone and generally tighter beyond.
• Later today BOJ's Ueda is on a panel at the ECB Forum with Fed Chair Powell, ECB's Lagarde, and BOE's Bailey.
• The local calendar tomorrow sees Retail Sales (May), International Investment Flows (June 23) and Consumer Confidence (June).
• The MoF also plans to sell Y2.9tn 2-year JGBs.