Futures Threatening Best Levels In April

In post-Tokyo trade, JGB futures closed higher but below their session highs, closing +24 compared to settlement levels. This was due to risk-off sentiment following generally disappointing US corporate earnings, which caused US Tsys richen in NY trade. US US Tsys were however slightly cheaper than their late session bests after Alphabet revenue beat expectations with NASDAQ futures re-opening 1.3% firmer than the NY close.

• At 147.98, JBM3 sits at its highest level since April 3 and above the range of 147.40-147.92, which it has traded in since early April.
• With last week’s decline in JGB futures seen as corrective, according to MNI's technical analyst, the recent move above the 20-day EMA at 147.65 now draws attention towards the Mar 22 high of 149.53.
• Further evidence of portfolio adjustments out of offshore debt by local participants was out late yesterday with Meiji Yasuda Life Insurance announcing that it plans to cut its holdings of currency-hedged foreign bonds while adding non-hedged debt in the current fiscal year. Dai-ichi Life also announced that it planned to add Yen bond holdings and cut hedged foreign debt.
• The Federal Reserve and global counterparts also announced late yesterday that they will revert to weekly from daily dollar swap operations with banking concerns subsiding.
• No domestic data is slated today with 2-year JGB supply as the headline.
• BoJ Governor Ueda is scheduled to appear in Parliament at 0110 BST.