JGBs have had a pretty active session in.......>

JGBS: JGBs have had a pretty active session in contrast with the US, with 10

year futures last 10 ticks off Friday's closing levels at 152.10. The RTRS

sources story out over the weekend noting that Japan plans to trim its JGBs

issuance during the next financial year in an attempt to curb public borrowing

has failed to support the space, which has underperformed the US.

- 10-year cash yields are trading 1bp higher on the day, recovering from their

lows to trade at 3.7bps last, while real yields are 0.8bps lower at -32.6bps,

having failed to break to the upside last week despite a test of the -30bps

level. 

- The curve has recovered after seeing some early bearish flattening, with the

2s-10s spread still down 0.5bps at 16.8bps, while the JP-US spreads trades flat

at 285.8bps. 

- The US FOMC and Japanese CPI data will likely be the key market drivers this

week.