Futures Cheapen A Little, Long End Remains Bid, Lifers Likely At Work

JGBs were relatively resilient in the face of the broader downtick in core global FI markets, with futures down a mere 6 ticks on the day ahead of the bell after giving back a modest early uptick, while cash JGBs run flat to 3bp richer, with the curve flattening. 7s underperform on the curve owing to the downtick in futures, while super-long end outperformance has been evidence from early Tokyo trade, with the resilience likely a clue re: continued domestic lifer & pension demand when it comes to the longer end of the JGB curve.

• Domestic headline flow remains limited, with the only real point of note being the 0.2ppt uptick observed across each of the 3 major Y/Y CPI readings (which was in line with exp., outside of the CPI excluding fresh food and energy measure, which provided a 0.1ppt beat vs. expectations). Note that the excluding fresh food and energy measure remains some way shy of the BoJ's 2% target, operating at +1.2% Y/Y.
• Monday’s docket lacks any meaningful events of note.