Futures Holding In Positive Territory, Int. Payments On Govt. Debt Set To Double

JGB futures are holding richer, +17 compared to settlement levels, after rejecting an attempt to push lower early in the afternoon session. With the domestic calendar light (Monetary Base data as the only release), local participants have been largely sitting on the sidelines ahead of US Non-Farm Payrolls later today.

• Cash US tsys have also been trading in narrow ranges in today’s Asia-Pac session. Currently, they are dealing 1-2bps cheaper across benchmarks after being slightly richer earlier in the session.
• (RTRS) Japan faces more than a two-fold increase in annual interest payments on government debt to 24.8 trillion yen ($169 billion) over the next decade, draft government estimates seen by Reuters showed on Friday.
• The cash JGB curve has maintained its bull-flattening, but early yield declines have been slightly pared. Yields currently sit flat to 3bps lower. The benchmark 10-year yield is 2.3bps lower at 0.682% versus the Nov-Dec rally low of 0.555%.
• The BoJ Rinban Operations covering 1-10-year JGBs showed mixed results.
• The swaps curve is little changed. Swap spreads are wider.
• Next week, the local calendar sees Jibun Bank PMI Services & Composite and 10-year linkers supply on Monday, ahead of Labour and Real Cash Earnings on Tuesday.