JGB Futures Just Off Session Highs, Ueda To Appear Before Parliament

JGB futures have firmed in the first part of trading, last at 144.57, +.23, albeit slightly off session highs (144.63). This is fresh highs for the week, with Oct 25 highs around 144.90 is the next potential upside target. US Tsy futures ticked up in early trade, but this move has had little follow through

• The technical picture for JGBs remains weaker from a broader context though. We have to clear the Sep 4 high at 146.41 to signal a short term base and scope for higher moves. On the downside 143.44, the early Nov low remains intact.
• In the cash JGB space, early yield momentum is to the downside, in line with weaker core yield trends from Tuesday's session. The 10yr is off 2bps to 0.865%, while the 20-30yr tenors are seeing yield losses in excess of 3bps.
• It's a similar story in the swap space, the 10yr to just under 1.04%.
• The main focus this morning will be BoJ Governor Ueda's appearance before the parliament.