Futures Uptick At Lunch, Light Calendar

At the Tokyo lunch break, JGB futures have moved into positive territory, +3 compared to settlement levels, after holding a downtick for most of the morning session.

• Today the local calendar is light with the Tertiary Industry Index later as the sole release.
• Accordingly, local participants have likely been on headlines and US tsys watch. US tsys are dealing ~1bp richer across the major benchmarks. Participants have faded the moves lower seen late in yesterday's NY session, perhaps using the opportunity to close shorts/enter fresh longs.
• Cash JGBs are dealing slightly mixed, with yields +0.8bp to -0.7bp. The benchmark 10-year yield is 0.4bp lower at 0.712% versus the post-YCC tweak high of 0.723%.
• Swaps are dealing richer, with rates 0.4bp to 1.0bp lower. Swap spreads are tighter, apart from the 7-year.