Japanese 10 year bond futures have extended....>

JGBS: Japanese 10 year bond futures have extended their gains above Friday's

highs, last dealing 12 ticks up on the day at 152.27. The lack of constructive

comments from President Xi's speech regarding trade and a number of digs at the

US administration ('no golden principles or arrogant teachers for reform')

disappointed risk assets which had gone into the speech on a solid footing.

- 10year cash yields sit at 2.9bps, down 1bp as the 2.0bp support level comes

into focus but is holding for now. The ongoing decline in breakevens is keeping

upside pressure on real yields, with the 10-year linker closing in on key

resistance at the -30bps level. 

- The Japanese Ministry of Finance (MOF) sold Y807.8bn of 20-Year JGBs today

with an average yield of 0.543% and a Bid/Cover of 3.443x.

- - The BoJ is set to release its MonPol decision Thursday, while trade balance

data is due Wednesday and inflation figures are due Friday. Ahead of this the US

Fed's meeting tomorrow is likely to be a key driver, while oil prices will also

be closely watched.