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Tests Major Support - The 2017 Low!


Bulls Still In Charge


Fades Through Thursday


(M1) Bounces Off Lows


(N1) Falls Back Into Range


Fresh Weekly Lows


Weakness in JGB futures probably helped T-Notes off of early Asia highs after the latter had a look through its Friday highs early on, before a modest bid came back in, although the range for T-Notes was limited to 0-03. Contract last +0-03+ at 136-31, with volume running at a sedate ~45K owing to the U.S. holiday, which means that cash Tsys will be closed until Tuesday's Asia-Pac session. Eurodollar futures unchanged to +0.5 through the reds, with activity in the space calming after some buying activity in early Asia-Pac hours.

  • A JiJi source report pointing to the BoJ considering a suggestion re: the widening of the band that it allows 10-Year JGB yields to operate in is all that has mattered for JGBs, with futures last -16, although the contract is now 13 ticks off the early Tokyo lows. As we mentioned earlier, it was an unattributed report, with no indication re: the timing of any potential announcement, although most have chosen to focus on the BoJ's monetary policy review, set to be released in March, as a potential landing strip for any such move.
  • It was quite a narrow session for the Aussie bond space, which leaves YM +1.0 and XM +1.5 at typing, with the latter sticking to the range established in early Sydney dealing and little attention paid to the latest round of Chinese macro data. Long end outperformance has been at the fore in cash trade, with the curve bull flattening, while swaps have lagged ACGBs from 5-Years to further out, resulting in some swap spread widening.
MNI London Bureau | +44 0203-865-3809 |