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JGBS: Futures Up From Earlier Lows, Recent Ranges Maintained, Tankan Tomorrow

JGBS
BulletAPACFixed Income BulletsJapanMarkets

JGB futures have drifted higher post the lunchtime break. We were last 142.93, -.04 compared to settlement levels. Earlier lows were at 142.79. Recent highs have been around 143.06, so we remain within recent ranges.  

  • The US backdrop has been for weaker US Tsy futures, although aggregate moves haven't been large. Aussie bond futures slumped post the stronger Nov jobs report, but spillover was limited for JGBS.
  • In the cash JGB space, yields have ticked down a touch as the session has progressed. The 10yr is back under 1.07%, while the 20-40yr tenors are off by 1-2bps. The 1yr yield is holding higher though, up 2bps to 0.46%.
  • In the swap space, yields are holding higher, led by the 20-30yr tenors, but are away from best levels.
  • Tomorrow, the main focus will be on the Tankan Q4 print. Dec hike odds are down noticeably from late Nov levels above 60%. We also have BoJ Rinban ops tomorrow. 
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JGB futures have drifted higher post the lunchtime break. We were last 142.93, -.04 compared to settlement levels. Earlier lows were at 142.79. Recent highs have been around 143.06, so we remain within recent ranges.  

  • The US backdrop has been for weaker US Tsy futures, although aggregate moves haven't been large. Aussie bond futures slumped post the stronger Nov jobs report, but spillover was limited for JGBS.
  • In the cash JGB space, yields have ticked down a touch as the session has progressed. The 10yr is back under 1.07%, while the 20-40yr tenors are off by 1-2bps. The 1yr yield is holding higher though, up 2bps to 0.46%.
  • In the swap space, yields are holding higher, led by the 20-30yr tenors, but are away from best levels.
  • Tomorrow, the main focus will be on the Tankan Q4 print. Dec hike odds are down noticeably from late Nov levels above 60%. We also have BoJ Rinban ops tomorrow.