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Futures Holding A Downtick, Light Local Calendar

JGBS

In Tokyo morning trade, JGB futures are holding a downtick, -4 compared to settlement levels.

  • (Bloomberg) -- Japan is about to see whether wage hikes will be strong enough to prompt the central bank to conduct its first interest rate hike since 2007 as early as next week, a move that would influence prices on everything from financial assets to mortgages to daily necessities. (See link)
  • Today, the local calendar is empty.
  • Cash US tsys are dealing ~1bp richer in today’s Asia-Pac session after yesterday’s 5-6bps cheapening following February’s US CPI print. Looking ahead, the main focus is on Thursday's Retail Sales and PPI data.
  • Cash JGBs are slightly mixed, with yield movements bounded by +/- 1bp. The benchmark 10-year yield is 0.2bp higher at 0.772% versus a yearly high of 0.779% set yesterday.
  • Swaps are slightly cheaper. Swap spreads are mostly slightly wider.

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