Futures Hold Early Bid

The early bid, as Tokyo reacted to Thursday’s major central bank meetings and seemingly elevated chances of BoJ Deputy Governor Amamiya succeeding current Governor Kuroda, has held, leaving futures 33 ticks better off, while wider cash JGBs are flat to 3bp richer, with 7s and 20s leading on the curve. Swaps have generally lagged the move in JGBs, leading to wider swap spreads in the main. Local headline flow has been fairly subdued, with continued rhetoric re: Sino-Japan relations and BoJ Governor Kuroda outlining the current paper loss of the BoJ’s bond holdings providing the highlights.