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Futures Extend Overnight Weakness In Morning Trade, Light Local Calendar

JGBS

In Tokyo morning trade, JGB futures have extended overnight weakness, -14 compared to settlement levels, but currently sit above the morning’s low.

  • Jibun Bank and S&P Global PMIs for March (F): Services Index rose to 54.1 from 52.9 in Feb and Composite Index rose to 51.7 from 50.6 in Feb.
  • Cash US tsys are dealing little changed in today’s Asia-Pac session, after yesterday’s twist-steepening.
  • The BoJ will conduct Rinban Operations covering 1-5-year and 10-25-year JGBs today.
  • Cash JGBs are flat to 2bps cheaper across benchmarks. The benchmark 10-year yield is 0.7bp higher at 0.756% versus the YTD high of 0.801%.
  • The swaps curve has bear-steepened, with rates flat to 1bp higher. Swap spreads are mixed.

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