In Line With The Broader Theme

JGB futures have trickled lower early this week, with the offshore impulse and lack of domestic risk events evident on Monday allowing dealers to extend on the weakness seen during the second half of Friday's Tokyo trade, which spilled into the overnight session. Futures last -15, just off early lows, and still some way above the next area of technical support (the month-to-date lows located at 150.18). The 7- to 20-Year zone of the cash JGB curve represents the weak point, cheapening by ~1bp thus far. Super-long swap spreads have seen some incremental widening, pointing to payside flows helping the broader weakness.