JGB futures have given back early gains that...>

JGBS: JGB futures have given back early gains that saw the 10-year hit 150.08,

to trade at 150.02, keeping the focus on last week's low at 149.95. A break

below this level is needed to extend the selloff towards the Aug 3 crash lows. 

- 10-year yields have recovered all of Friday's losses, gaining 0.3bps to trade

at daily highs of 0.158%. Last Thursday's high at 0.165% looks set to come under

pressure as the bullish trend is gaining momentum. 

- The 2s-10s curve is down 0.1bps at 26.10bp, but remains close to its highest

level since April 2017, helped by the recent steepening in the US curve. 

- The US-Japan 10-year spread has come in from fresh cycle highs of 309.2bps to

trade at 308.1bps, despite the rise in JGB yields being much sharper in

volatility-adjusted terms.