Futures Nudge Higher, Curve Twist Steepens

JGB futures extend on the bounce that was observed in post-Tokyo dealing, aided by a similar move in U.S. Tsys & ACGBs, leaving the contract +10 at typing. Wider cash JGB trade has seen the curve twist steepen, with the major benchmarks running 1bp richer to 1bp cheaper, pivoting around the 10- to 20-Year zone, with 7s outperforming on the bid in futures.

• There was no reaction to the latest domestic labour market report which saw a modest uptick in the job-to-applicant ratio and a steady unemployment rate.
• Wider global matters and the interest of the domestic life insurer and pension fund cohort re: super-long JGBs continue to provide the focal points for participants.