Futures Close To Mid-October Highs
Futures sit at 145.49, +.87 at the lunch time break, just below session highs (145.50). We are closing in on mid October highs at 145.63. A break above this level is likely to see round figure resistance at 146.00 targeted. From there, clearance of 146.41, the Sep 4 high would highlight a base in futures and a possible more meaningful short-term reversal.
- In the cash JGB space, sharp yield losses have continued. The 10yr to 0.78%, off 8bps, while the 20-40yr tenors are seeing slightly larger yield losses (-9bps).
- In the swap space, the 10yr is sub 0.95%, off 5bps.
- Added impetus has come from the earlier Q3 GDP miss, which was particularly disappointing from a domestic demand standpoint.
- The BOJ bond buying ops totaled ¥1.25trln.