Futures Outperforming, Ueda Reiterates That 10yr Yield Unlikely To Spike Much Above 1.0%

JGB futures have continued to tick higher, last near 144.48, +.40 (session highs at 144.53). 10yr cash JGB yields are at fresh session lows, just under 0.88%. The 7yr and 30yr bucket continue to see slightly large falls in yield terms, around 6bps. 10yr swap rates are under 1.05% as well.

• This is outperforming UST future moves at the margin, where a slightly cheapening trend is evident.
• BOJ Governor Ueda has spoken at a press conference in Japan and noted that the economy is expected to gradually improve further. Much uncertainty holds over the outlook and the virtuous economic cycle.
• He added the Oct YCC tweak was to reduce side effects and that even if yields continue to climb, it was important to note that real yields would remain low and support financial conditions. The BOJ would be nimble and continue with its large scale large scale bond buying (¥1.825trln of offer purchases today). He reiterated his call that the 10yr yield is unlikely to rise much beyond 1.0%.
• Wage negotiations next spring will be watched closely and that attaining the price goal isn't within sight yet with sufficient certainty, although chances of achieving it are gradually rising (see this BBG link).