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Futures Drift Higher In Early Dealings

JGBS

JGB futures are a touch higher in early dealings, last 144.43, +.05. Earlier highs were at 144.48, while we opened at 144.39. US Tsy futures have had a muted start, so at the margin JGBs are outperforming.

  • With no data out, focus will be on BoJ's Uchida appearance before parliament. We also have 5yr supply on tap later, with the MoF selling ¥2.5trln of securities.
  • In the cash JGB space, early trends are relatively steady. The 10yr bond yield last near 0.875%. 30-40yr yield s have ticked up by almost 2bps. We are flat at the front end.
  • Swaps are divergent somewhat, the 10yr yield tracking slightly lower near 1.06%.

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