Futures Holding Near Overnight Closing Levels

In Tokyo morning trade, JGB futures are holding near overnight closing levels, +6 compared to settlement levels. The local calendar is relatively light today.

• Japan's weekly investment flows saw continued buying from offshore investors into local bonds remained positive at ¥175.9bn, but down from the prior pace. In terms of outbound, Japan flows to the rest of the world, and there was a sharp spike in offshore bond purchases, just under ¥1500bn.
• Later, the local calendar sees the Tertiary Industry Index and an Enhanced-Liquidity Auction for OTR 15.5-39-year JGBs.
• BoJ Governor Ueda is scheduled to appear in Parliament from 11:35 JT.
• Cash US tsys are dealing flat to 1bp cheaper in today’s Asia-Pac session after Atlanta Federal Reserve President Raphael Bostic said he is still not thoroughly convinced inflation is on track to the central bank's 2% target and will need to see continuing evidence of ebbing prices pressures to build greater confidence: MNI (See link)
• Cash JGBs are slightly mixed, with yield movements bounded by +/- 1bp. The benchmark 10-year yield is 0.3bp lower at 0.729% versus the Nov-Dec rally low of 0.555%.
• The swaps curve has bear-steepened, with rates flat to 2bps higher. Swap spreads are mixed.