Japanese bond futures remain strong, trading...>

JGBS: Japanese bond futures remain strong, trading near daily highs and not

following US bonds lower in recent trading. The 10-year sits at 150.37, just off

its intraday highs of 150.40. The cash market has performed poorly with the

10-year yield remaining flat at 0.10%. 

- 30-year yields have fallen 1bps to trade at 0.833%, their lowest level since

August 2. 

- Breakevens edged up slightly in early trading but have since dropped back into

their recent range, currently at 0.411%, remaining near 10-month lows. 

- The JP-US 10-year yield spread continued to narrow, currently at -276bps, a

4-month low. The real yield spread has narrowed even more sharply as Japanese

breakevens have fallen, and now sits at -108.0bps, up from 149.7bps three months

ago.