Futures Holding Stronger At Lunch, 40Y Supply Results Due

At the Tokyo lunch break, JGB futures are stronger, +10 compared to the settlement levels.

• There hasn’t been much in the way of domestic data drivers to flag.
• (Bloomberg) -- Bank of Japan Board Member Naoki Tamura says the manner in which monetary policy is managed is going to be extremely important for a slow, steady normalization to put an end to extraordinarily large-scale easing. (See link)
• (Bloomberg) -- The impact of cost-push inflation stemming from imports is expected to ease and people’s livelihood is likely to improve, Bank of Japan Governor Kazuo Ueda says. (See link)
• Cash JGBs are dealing slightly mixed, with yield movements bounded by +0.4bp to -0.7bp. The benchmark 10-year yield is 0.2bp higher at 0.741% versus the YTD high of 0.801%.
• The 40-year yield is little changed ahead of supply.
• The swaps curve has twist-steepened, pivoting at the 20s, with rates 3bps lower to 2bps higher. Swap spreads are mixed.