Futures Struggle For Meaningful Upside, Again

JGB futures couldn't better the overnight high in Tokyo trade, last +5 vs. settlement levels, again struggling for any real traction above 152.00 and trading below the figure at typing.

• The 10-20 Year sector saw modest underperformance, cheapening at the margin, while the remainder of the cash JGB curve traded richer. Swaps were wider vs. JGBS across the curve as the swap curve twist steepened.
• The BoJ left the size of its 1-10 Year Rinban ops unchanged, with the following offer/cover ratios: 1-3 Year: 2.53x (prev. 2.01x), 3-5 Year: 2.35x (prev. 3.50x), 5-10 Year: 3.44x (prev. 1.97x).
• The first round of BoJ US$ ops covering year-end received 0 bids, adding credence to calls for a sanguine year-end in US$ funding markets.
• On the data front, the final Japanese industrial production readings for August were a touch softer than flash.
• Focus on Thursday moves to the latest liquidity enhancement auction for off-the-run 1-5 Year JGBs.