April 30, 2024 02:49 GMT
Futures Richer & At Session Highs At Lunch
JGBS
At the Tokyo lunch break, JGB futures are sharply, +64 compared to the settlement levels, after dealings resumed after yesterday’s public holiday.
- According to MNI's technical team, a bear trend in JGB futures remains intact. The contract for now is trading above key support and bear trigger at 143.44, the Nov 1 low. A stronger reversal higher is required to signal the end of the recent downward phase. Key resistance is at 145.95, the Mar 28 high. A break would signal scope for a climb towards the bull trigger at 147.74, the mid-January high. On the downside, a move through 143.44 would strengthen a bearish condition.
- There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined labour market, retail sales and IP data.
- Cash US tsys are ~1bp richer across benchmarks, continuing the rally since Thursday’s Q1 PCE Deflator-induced low.
- Cash JGBs are richer out to the 20-year, with yields 1-3bps lower, and slightly cheaper beyond. The benchmark 10-year yield is 2.3bps lower at 0.868% versus the YTD high of 0.930%.
- The swaps curve has bull-flattened, with rates 1-2bps lower. Swap spreads are wider out to the 7-year and tighter beyond.
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