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Futures Edge Up From 144.00 Test, Yen Weakens

JGBS

JGB futures sit a little higher in early Thursday trade. We were last 144.13, -.08 for JBM4. Intra-session Wednesday lows came close to 144.00. US futures sits a touch higher but have tracked tight ranges so far.

  • In the cross asset space, we are seeing weaker Japan equities, in line with tech equity futures weakness in US markets (post Meta disappointment). USD/JPY is edging higher, last near 155.40, which is above Wednesday highs at the margin.
  • For cash JGBs the 10yr yield is off touch, last at 0.895%. Wednesday's move above 0.90% marked highs back to Nov last year. We are slightly lower in yield terms for the 20-40y tenors as well.
  • The 10yr swap rate is also down slightly near 0.98%. Later on, we have some second tier data around leading indices and department store sales.

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