Futures Following Tsys Higher, 1yr and 20yr Debt Sales Still To Come

JGB futures have spiked higher in recent dealings, last at 144.19, +.28 for JBM4 (just off session highs). This has coincided with a break higher in US 10yr Tsy futures (through Wednesday highs), so positive spill over is likely at play.

• We aren't too far away from levels earlier in the week near 144.30, which prevailed prior to the BoJ curbing bond buying for the 5-10 tenor as part of its normal operations.
• In the cash JGB yield space 5-10yr yields are off around 2-3bps at this stage. In the 30-40yr tenors yield losses are a little over 1bps. The 10yr swap rate is back under 0.99%.
• We had the Q1 GDP dip earlier, which showed a deeper than expected fall in GDP growth, still there is a sense momentum could improve in Q2 (see this link).
• Coming up later we have the 1yr and 20yr debt auctions.