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Futures Holding Weaker, Narrow Range, Eyeing US Tsys

JGBS

At the Tokyo lunch break, JGB futures are holding in negative territory, -6 compared to settlement levels, after dealing in a narrow range.

  • There hasn’t been much in the way of domestic drivers to flag. Later today the local calendar sees June Leading and Coincident Indices.
  • Accordingly, local participants have likely been on headlines and US tsys watch. US tsys have firmed from session lows, the move came alongside a bid in regional equities and US equity futures consolidating gains. US tsys have held close to session highs despite regional equities paring gains in recent dealing. Cash tsys sit little changed across the major benchmarks.
  • Cash JGBs are flat to 0.7bp cheaper. The benchmark 7- and 10-year yield is 0.7bp higher at respectively 0.430% and 0.667%.
  • Swap rates are mixed, with pricing 0.2bp lower to 0.5bp higher. Swap spreads are mixed.

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