Futures Holding Overnight's Uptick, Local Calendar Light

JGB futures are holding at overnight closing levels, +8 compared to settlement levels, after cash US tsys open marginally stronger in Asia-Pac trade. With the Asian calendar light today, local participants are likely to be on headline watch.

• Money data showed M2 and M3 virtually unchanged in April in y/y terms, printing respectively +2.5% and 2.1%.
• Cash JGBs are richer across the curve apart from the 1-year zone with is 0.9bp cheaper. The cash curve has opened flatter with yields 0.2bp to 2.4bp lower with the benchmark 10-year yield 1.1bp lower at 0.387%, well below the BoJ's YCC limit of 0.50%. The benchmark 30-year yield is 2.1bp lower at 1.211%, after yesterday’s 5bp decline following the strong auction result.
• The BoJ will conduct bond purchase operations covering 1–3-year, 5-10-year, 10-25-year, and 25-year+ tenors today.
• Swap rates are lower across the curve with swap spreads wider except for the 1-year zone.
• The MoF will also auction Y6.3tn of 3-month bank bill supply.