Futures Tick Higher In Early Trade

JGB futures have ticked higher in early Tuesday dealings. We were last 144.32, -.11. Monday lows came in around 144.17. This leaves us comfortably within recent ranges (Monday highs at 144.55).

• The early tone to US futures has been a modest richening (TYZ last 107-25, +06), so JGB futures have likely taken some sympathy from these moves.
• In the cash JGB space, early moves are muted at this stage. The 10yr yield is a touch lower, last near 0.88%, with most other parts of the curve also off slightly in yields terms.
• In the swap space we are seeing steadier outcomes. The 10yr last at 1.064%. US-JP 10yr swap spreads were last around +315bps, up from Friday's low of 308bps.
• Earlier we had September wages data which was close to expectations and still showed real wages growth deeply in negative territory (see this link for more details). Given Ueda's comments yesterday around uncertainty on achieving the inflation goal, today's data is unlikely to shift sentiment greatly.
• Later on, the MoF will sell ¥250bn of 10yr inflation linked bonds at 12:35pm local time.