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Futures Close To Unchanged At Break, 5yr Supply Coming Up

JGBS

JGBs sit at 144.40, +.02 at the lunch time break. We have traded fairly tight ranges in the first part of trade, lows at 144.35, against highs of 144.48. This leaves us comfortably within recent ranges. US Tsy futures have drifted a little in recent dealings, but equally remain range bound.

  • BoJ Deputy Governor appeared before parliament stating that the central bank wants to continue supporting economic activities, and that the key is whether wages can support consumer spending. Sentiment wasn't shifted on these remarks though. The comments are very much in line with recent rhetoric from Governor Ueda.
  • In the cash JGB space, trends are steady. The 10yr yield sits just above 0.875%, close to opening levels. The 10yr swap is near 1.065%.
  • Coming up shortly we have the 5yr debt supply auction.

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