Long End Supported By Soft GDP Data

Cash JGBs run ~1bp cheaper to 3.5bp richer as the curve twist flattens.

• JGB futures added to their modest overnight bid, which was linked to the post-Tokyo move in U.S. Tsys and some Monday richening in the likes of the German FI market, with softer than expected domestic GDP data providing further support.
• That left the contract +17 into the bell, just shy of early session highs.
• The bid in the long end was relatively sticky, also linked to the previously outlined moves in the wider core global space in post-Tokyo Monday trade and the soft domestic data.
• Headlines covering comments from Japanese Economy Minister Nishimura & BoJ Governor Kuroda were not market movers.
• 5-Year JGB supply was fairly non-descript, with average internal metrics observed.
• Looking ahead, Wednesday will see the release of core machine orders data.