Futures Back To Flat On Global Dynamics

JGB futures hit the lunch break effectively unchanged vs. yesterday’s settlement levels, with the previously alluded to recovery in the Hang Seng & U.S. e-mini futures aiding the pull away from early session bests. A quick reminder that aversion of the worst-case scenario for Japan after the latest North Korean missile launch aided the early pull away from best levels. More widely, cash JGBs sit little changed to 2bp richer, with the super-long end still outperforming on the day, while swap spreads continue to sit flat to wider across the bulk of the curve. We haven’t had much in the way of meaningful domestic news flow outside of BoJ Governor Ueda’s pre-market musings and the situation surrounding the North Korean missile launch. A liquidity enhancement auction for off-the-run 15.5- to 39-Year JGBs headlines the local docket this afternoon.