Futures At Overnight Bests Ahead of 20-Year Supply

JGB futures (147.53) have moved back to overnight bests, +13 versus settlement levels at the lunch bell. With US Tsys little changed in Asia-Pac trade, the local market’s push from the Tokyo session low appears to have been aided by signs of weaker domestic demand embedded in the materially weaker-than-expected import growth in today’s trade data release, as previously flagged.

• There hasn’t been much in the way of other domestic news flow, outside of the weekly international security flow data from the Japanese MOF. The data revealed that Japanese investors were net buyers of international bonds in the week ending April 14 (although the amount wasn't standout). International investors were marginal net buyers of Japanese bonds last week, registering a third consecutive week of net purchases in the process.
• Cash JGBs have maintained their twist flattening with 2-year yields 0.4bp cheaper and yields beyond 0.8-3.0bp richer. The benchmark 20-year yield is 3.0bp lower at 1.06%, ahead of this afternoon's 20-Year JGB supply, showing no sign of concession as it outperfroms on the curve.
• Swap spreads are tighter across the curve.