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Little In The Way Of Meaningful Movement Thus Far

JGBS

Cash JGBs run 1bp richer to 1bp cheaper across the curve, with 40s presenting the only real point of cheapening pressure on the day, while the swap curve has seen a parallel ~0.5bp shift higher in rates across the term structure. JGB futures have nudged lower, last dealing -4 after Friday’s firm rally, showing below their overnight base in the process.

  • Most desks seem to hold a bit of a cautious stance ahead of this week’s BoJ meeting, even though an overwhelming majority look for no moves come the end of Governor Kuroda’s final meeting atop the Bank (albeit with varying degrees of conviction).
  • Headline flow has been somewhat light to start, with a lack of meaningful domestic news flow evident since Tokyo trade got underway.
  • A JTUC survey flagging multi-decade highs for wage hike demands from Japan’s trade unions (released Friday), with an average request of a ~4.5% raise noted, could be one source of the modest pressure for futures.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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