Free Trial

Futures Hold Cheaper, Curve Twist Flattens

JGBS

JGB futures consolidated around overnight closing levels after a two-way start to Tokyo trade. That leaves the contract -15 into the bell, with 7s providing the weakest point on the curve on the weakness in futures (~2bp cheaper on the day), while wider JGBs observe some twist flattening.

  • 10-Year yields continue to hover around the ~40bp mark, 10bp shy of the BoJ’s new YCC cap.
  • Local headline flow saw the 3 major Y/Y CPI readings print broadly in line with expectations, once again ticking higher in November, while reports did the rounds re: a potential January cabinet reshuffle from PM Kishida.
  • Looking ahead, PPI services data headlines the local docket on Monday, with the labour market report and retail sales prints due on Tuesday. Tuesday will also bring the latest round of 2-Year JGB supply.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.