July 26, 2024 00:35 GMT
Futures Biased Higher Post Tokyo CPI Print, But Still Sub 143.00
JGBS
JGB futures have started Friday trade with a positive bias. JBU4 was last 142.86, +.12. Earlier highs were at 142.96. the contract has been unable to get above 143.00 in recent sessions.
- Some positive spill over from the slight Tokyo CPI miss may be in play, although the outcome is unlikely to shift BoJ thinking dramatically ahead of next week's policy meeting.
- We are also seeing a slight uptick in US 10yr futures, although we remain within recent ranges.
- Cash JGB yields are down slightly at the back end, 20-40yr tenors off around 2bps. We are steadier at the font end, the 2yr last near 0.40%. In the swap space, rates are lower, with the 10yr back to 0.98%.
- Coming up later we have the 2yr bond auction.
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