Futures Weakness Extends Through Overnight Lows, Curve Steepens, Swap Spreads Hold Wider

The weakness in JGBs has extended after futures breached their overnight base, with the break seemingly triggering an uptick in momentum/activity. Still, the contract remains comfortably within the recently observed range, last printing -37, half a dozen ticks back from worst levels of the day. Cash JGBs sit 1bp richer to 4bp cheaper as the curve twist steepens, with super-long end weakness now outstripping the futures-related move in 7s. Swap spreads continue to hold wider on the day, with swap rates running 1-9bp firmer. Outgoing BoJ Governor Kuroda will appear in front of parliament shortly.