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Futures Down, But Up From Session Lows, Ueda Due In Parliament Later

JGBS

At the lunch break, JGB futures sit just above session lows (145.53), last 145.60, -.06.

  • This broadly matches the US Tsy future trajectory, which are also up from session lows (last 108-09+).
  • Some marginal support may be coming through from lower US equity futures and a softer oil price backdrop.
  • In the cash JGB space, yields sit marginally higher. The 10yr is a touch above 0.78%. Firmer yield gains are evident across the 20-40yr tenors. The 20yr back above 1.51%. The 10 swap rate is back above 0.99%. But like the JGB space, the back end of the curve is seeing slightly strong yield gains.
  • Still to come is BoJ Governor Ueda before parliament.

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