Futures Weaken Further, Curve Twist Flattens

The JGB curve twist flattened this morning, with 30+-Year paper experiencing some marginal richening, while 7s led the cheapening observed across the remainder of the curve, softening by ~1.5bp, pointing to a futures-driven move on the back of the overnight/Tokyo morning weakness observed in the contract (-23 ticks, just off worst levels at the lunch bell). Local headline flow has been relatively modest, we saw PPI data provide an upside surprise, while Japanese Prime Minister Kishida pointed to the need for coordinated government action to combat the well-documented inflationary pressures that the world faces at present. 20-Year JGB supply is due this afternoon.