Mixed Across The Curve, Futures a Touch Higher

JGB futures have oscillated within the range established during the early rounds of Tokyo dealing, hitting the lunch bell +11. Meanwhile, the long end of the curve lagged the bid in paper out to 7s, as set up for this afternoon’s 40-Year auction weighed on the super-long end through most of the Tokyo morning, although 40s recovered ahead of the lunch break. Cash JGBs are 1bp richer to 1bp cheaper across the major benchmarks as a result.

• Local headline flow hasn’t really evolved since our earlier JGB update, with focus largely on this afternoon’s supply after services PPI data (a modest downside outcome) and the previously covered summary of opinions from the most recent monetary policy decision (no surprises) crossed.