Free Trial

Futures Close Near YTD Lows Amid Broader Fixed Income Pressures, BoJ Tomorrow

JGBS

JGB futures finished the post Tokyo session at 144.09, -.12 for JBM4. This was slightly above session lows near 144.00. Futures were weighed by broader pressures in the global fixed income space post yesterday's Australian CPI beat and pressure in Germany post bund supply.

  • Today we have a few data pieces, but nothing that is likely to shift the sentiment needle ahead of tomorrow's BoJ outcome (see this link for our preview). We don't expect any major changes to be announcement tomorrow, with gradual tightening expected.
  • Focus is likely to rest on weakness in yen and spillover to domestic inflation, while tapering of bond buying will also be eyed.
  • To recap, cash JGB 10yr yields finished up just above 0.90% yesterday, while the 10yr swap rate last tracked near 1.0%.
  • On the supply front, note the next major supply is 10yr on May the 8th.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.