November 20, 2023 00:23 GMT
JGBS: Slightly Weaker In Early Tokyo Dealings
In early Tokyo dealings, JGB futures are slightly weaker, -6 compared to settlement levels, after closing the overnight session ahead of the weekend with a small gain (+6 versus settlement levels).
- On Friday, US tsys saw the initial move lower in yields reversed following stronger-than-expected housing construction data. Profit-taking amid overbought conditions was also likely in play.
- On Friday, the 2-year yield reached a low of 4.8% before finishing 5bps higher at 4.89%. The 10-year yield was unchanged on the day at 4.44% despite a temporary drop to 4.38%. A $15 billion auction of a new 20-year tsy is due later today.
- TYZ3 is dealing at 108-20, -0-03+, a touch below Friday's closing levels, early in the Asia-Pac session. The space appears marginally pressured as negotiations between Israel and Hamas for the release of hostages have re-started after a pause (BBG).
- The local data calendar just has condominium sales for Tokyo on tap today.