Futures Holding Slightly Weaker But Well Above Session Lows

In Tokyo Afternoon dealings, JGB futures are holding weaker, -2 compared to the settlement levels. Nevertheless, JBM4 currently sits some 20 points above the session lows.

• There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined Jibun Bank and S&P Global PMIs.
• Following yesterday's twist-steepening, US tsys are offering limited direction for the local market. Cash US tsys have seen minimal movement during today's Asia-Pac session.
• This morning’s BoJ Rinban operations saw negative spreads and slightly lower offer cover ratios for the shorter-dated buckets (<1-year: 1.53x, 1-3-year: 2.10x and 3-5-year: 2.06x). The 10-25-year bucket, however, showed mixed results. The bucket saw a lower offer cover ratio but a positive spread.
• The cash JGB curve has twist-steepened, with yields 1bp lower to 1bp higher. The benchmark 10-year yield is 0.2bp higher at 0.751% versus the YTD high of 0.801%.
• Swaps are little changed, with swap spreads mixed.
• Tomorrow, the local calendar will see Weekly International Investment Flow data alongside 30-year supply.