Futures Holding Weaker, Curve Twist-Flattens, Gov. Ueda In Parliament

In Tokyo morning trade, JGB futures are holding in negative territory, -9 compared to settlement levels, after resuming dealing after yesterday’s holiday. BoJ Governor Ueda has been in Parliament since 10:00 am JT. So far, Ueda has said:

• INFLATION TARGET CAME WITHIN SIGHT
• EXPECTS EASY FINANCIAL CONDITIONS TO REMAIN
• BOJ TO CONTINUE TO FIRMLY SUPPORT ECONOMY, INFLATION
• UPSIDE RISKS COULD HAVE BEEN BIGGER IF WAITED TOO LONG
• Earlier, Jibun Bank PMIs (Mar P): Mfg rose to 48.2 from 47.2 in Feb; Services rose to 54.9 from 52.9 in Feb; and Composite rose to 52.3 from 50.6 in Feb.
• Meanwhile, February Exports rose 7.8% from last year and Imports advanced by 0.5%.
• The cash JGB curve has twist-flattened, pivoting at the 5s, with yields 1bp higher to 3bps lower. The benchmark 10-year yield is 1bp lower at 0.731% versus the YTD high of 0.801%.
• The swaps curve has bear-flattened, with rates 1-2bps higher. Swap spreads are wider.