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JGBS: Cash Bonds Twist-Flatten After Natl CPI Core Measures Slightly Beat

JGBS

In Tokyo morning trade, JGB futures are basically unchanged, -1 compared to settlement levels.

  • According to MNI’s technicals team, recent weakness has culminated in a break of 143.57, marking both the Jul 17 high on the continuation contract as well as the Oct 22 low. For now, the 50-dma tops out at 144.19, and marks first resistance. Any recovery would open 146.53, the Aug 6 high (cont) and a bull trigger.
  • Japan nationwide Oct CPI prints were a little above market expectations. The headline printed in line with consensus at 2.3%y/y, versus 2.5% prior. The core ex fresh food measure was 2.3%y/y, against a 2.2% forecast and 2.4% prior outcome. The core measure which also excludes energy was 2.3%y/y against a 2.2% forecast and 2.1% prior.
  • Cash US tsys are ~1bp richer in today’s Asia-Pac session after yesterday’s modest bear-steepener ahead of the Thanksgiving Day holiday.
  • Cash JGBs have twist-flattened across benchmarks beyond the 1-year, pivoting at the 10-year, with yields 1bp higher to 1bp lower. The benchmark 10-year yield is 0.2bp lower at 1.096% versus the cycle high of 1.108%.
  • Swaps are dealing mixed, with rates 1bp lower to 2bps higher. Swap spreads are mixed.
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In Tokyo morning trade, JGB futures are basically unchanged, -1 compared to settlement levels.

  • According to MNI’s technicals team, recent weakness has culminated in a break of 143.57, marking both the Jul 17 high on the continuation contract as well as the Oct 22 low. For now, the 50-dma tops out at 144.19, and marks first resistance. Any recovery would open 146.53, the Aug 6 high (cont) and a bull trigger.
  • Japan nationwide Oct CPI prints were a little above market expectations. The headline printed in line with consensus at 2.3%y/y, versus 2.5% prior. The core ex fresh food measure was 2.3%y/y, against a 2.2% forecast and 2.4% prior outcome. The core measure which also excludes energy was 2.3%y/y against a 2.2% forecast and 2.1% prior.
  • Cash US tsys are ~1bp richer in today’s Asia-Pac session after yesterday’s modest bear-steepener ahead of the Thanksgiving Day holiday.
  • Cash JGBs have twist-flattened across benchmarks beyond the 1-year, pivoting at the 10-year, with yields 1bp higher to 1bp lower. The benchmark 10-year yield is 0.2bp lower at 1.096% versus the cycle high of 1.108%.
  • Swaps are dealing mixed, with rates 1bp lower to 2bps higher. Swap spreads are mixed.