Futures Tick Higher, Yields Up Modestly From Recent Lows

JGBs sits a touch above recent lows, last 144.48, -.28. Earlier lows were at 144.40. Overall ranges have been fairly tight in the first part of Friday trade. US futures are also a touch above earlier session lows as well (last 107-14).

• Local news flow has been light, with just Oct money supply data out (M3 growth was unchanged at 1.8% y/y, likewise for M2 at 2.4%).
• In the cash JGB space, we are seeing modest yield gains. The 10 and 20yr benchmarks +2bps higher in yield terms, The 10yr outright to 0.86%. The 7yr is tracking slightly higher, last near 0.63%. Moves at the front end of the curve remain more modest. More broadly, the beta with respect to US yield moves remains quite low though.
• In the swap space, 10yr is up around 1.5bps, last near 1.035%. Similar gains in yield terms are evident across other parts of the curve. The 40yr is +2bps to 1.60%.
• Still to come is BoJ bond buying ops, later on the MoF sells 3 month bills.