Free Trial

Futures Holding A Downtick At Lunch, BoJ Rinban Results Due

JGBS

At the Tokyo lunch break, JGB futures are holding a downtick, -2 compared to the settlement levels.

  • There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined Jibun Bank and S&P Global PMIs.
  • Recent weakness in JGBs resulted in a low print of 144.90. According to MNI’s technicals team, a stronger reversal higher is required to signal the end of the recent corrective phase. The bull trigger has been defined at 147.74, the mid-January high.
  • A break would resume the uptrend. Moving average studies remain in a bull-mode set-up, highlighting an uptrend.
  • For bears, a resumption of weakness would potentially open the 144.60 support. Impact of data
  • The cash JGB curve has twist-steepened, with yields 1bp lower to 2bps higher. The benchmark 10-year yield is 0.2bp higher at 0.751% versus the YTD high of 0.801%.
  • The BoJ announced an unchanged amount of JBGs buying from the previous outing. The BoJ offered to buy 150 billion yen in up to 1-year JGBs, 375 billion yen in one to three-year JGBs, 425 billion yen in three to five-year JGBs, and 150 billion yen in 10 to 25-year JGBs. Results due soon.
  • Swaps are little changed, with swap spreads mixed.

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.