Long End Leads The Bid

The uptick in wider global core FI markets provided some light support for JGB futures during the Tokyo morning, with the contract hitting the lunch bell -4 vs. settlement, unwinding most of its overnight losses. Cash JGB trade sees the long end lead the bid, with the major benchmarks little changed to ~4bp richer on the day (note that swap spreads are incrementally tighter across the curve, meaning that receiver side swap flow may be aiding the JGB bid). There hasn’t been much in the way of meaningful domestic news flow to trade off, leaving wider market gyrations at the fore.