Futures Off Highs But Outperforming Weaker US Lead

JBG futures sit comfortably off session highs, last at 148.15, +3. We haven't been to sustain breaks sub 148.10, despite an offered tone to TYU3, which is back to 112-21d, -06, not too far from NY session lows on Wednesday.

• In the cash bond space, we are lower in yield terms, but only marginally, and remain well within recent ranges. The 10yr around 0.425%, the 20yr near 1.00% and 40yr close to 1.39%.
• The swap space is seeing slightly firmer yield moves, the 10yr back to 0.593% at the time of writing, although we remain sub recent highs just above 0.6000%.
• Rinban purchases totaled ¥1.3tn earlier, while we also had a 3 month t-bill auction (see this link).
• The domestic focus today has been on fresh FX weakness, which has seen USD/JPY climb to fresh YTD highs. Verbal rhetoric from the authorities has picked up, but hasn't altered the trend at this stage.
• Tomorrow, we have the BoJ outcome, with no major changes expected, see our preview here.
• The opposition is also expected to put forward a no-confidence motion, which could see PM Kishida call an early election.