Japan 10-year futures are down 17 ticks from...>

JGBS: Japan 10-year futures are down 17 ticks from yesterday's highs last at

151.19. A close here on the week would set up a potential bearish reversal on

the daily chart. 10-year cash yields deal at 8.3bps, holding below recent range

lows but still ahead of the 200-dma. Today's miss in Toyko headline CPI which

came in at 0.8%y/y vs exp. of 1.1% failing to sustain recent declines in yields.

- Breakevens have bounced off the 40bps level has they have over recent months,

in line with the recovery in oil prices and equities. 

- US-Japan 10-year spread sits at 294.4bps after recovering yesterday's drop

caused by the decline in US yields.