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Futures Challenge Last Week's High

JGBS

JGB futures are challenging last week's high at typing, +5 vs. Tokyo settlement. Yields sit marginally mixed across the curve. Receiving of super-long swaps seemingly supported the long end, resulting in some light twist flattening of the curve.

  • 10-25 Year BoJ Rinban ops saw the purchase size unchanged and internals virtually unchanged vs. the previous round of ops.
  • The weekend was filled with commentary from the favourite to succeed outgoing Japanese PM Abe, Chief Cabinet Secretary Suga, who noted that he will consider topping up payouts to households and firms in order to soften the impact of COVID-19. Elsewhere, Suga showed no sense of any impending limits re: JGB issuance.
  • Voting for the leadership of the ruling LDP Party is underway, with results due to be formally announced as early as Wednesday (local press reports indicate that Suga remains the favourite).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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