Futures Holding A Downtick, BoJ Tamura Speech & 40Y Supply Tomorrow

JGB futures are holding a downtick, -2 compared to the settlement levels, having traded within a relatively constrained range.

• 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.
• There haven't been significant domestic catalysts to note, aside from the previously highlighted PPI Services. Final February machine tool orders are due.
• Cash US tsys are dealing flat to 1bp richer in today's Asia-Pac session after yesterday's 4-5bps cheapening across benchmarks.
• Cash JGBs are mostly richer, with yields +0.2bp to -1.0bp. The benchmark 10-year yield is 0.2bp higher at 0.736% versus the YTD high of 0.801% set on March 15.
• The swaps curve has twist-steepened, pivoting at the 20s, with rates 4bps lower to 1bp higher. Swap spreads are tighter out to the 10-year and wider beyond.
• Tomorrow, the local calendar sees a speech from BoJ Board Member Tamura in Aomori, along with 40-year supply.