Futures Slightly Lower in Early Tokyo Trading, Light Local Calendar

JGB futures are slightly weaker, -8 compared to settlement levels, after yesterday’s 26bp tick decline (the most since April 17).

• MNI's technical analyst reports that the JGB futures' continued appreciation indicates an extension of the present short-term bull cycle. Investors are now focusing on the bull trigger and the March 22 high of 149.53.
• With the local data calendar and supply side factors (JGB auctions or BoJ bond purchases) quiet today, local participants are likely to be on headline and US tsys watch through the release of China’s monthly data dump, the Euro Area's Q1 GDP and US Retail Sales.
• Cash JGBs are mixed so far in the Tokyo session with yield moves ranging from 0.1bp lower (30-year) to 0.8bp higher (10-year). The benchmark 10-year yield is at 0.414%, after yesterday’s 1.6bp increase.
• Swap rates are flat to 0.3bp higher with swap spreads generally tighter except for the 20-30-year zones.