Futures Tick Further Away From Worst Levels

JGB futures nudged further away from their early Tokyo base alongside a similar move in U.S. Tsys, with Fed pricing in the STIR space front and centre thus far. That left JGB futures -36 at the lunch break, just off best levels of the Tokyo morning session. U.S. Tsys added to the bounce from lows through the early part of the lunch break, but have since backed away from best levels. The major cash JGB benchmarks run flat to 2bp richer, with 20s now outperforming, although swap rates are holding higher (albeit off best levels), which is probably limiting the bid in JGBs, at least to some degree. Local headline flow remains relatively muted, outside of the previously outlined comments from Japanese Finance Minister Suzuki.