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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.
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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.