Modestly Firmer, Aided By Soft GDP Data

JGBs have seen a modest richening bias during early Tokyo trade, with spill over from Monday’s post-Tokyo U.S. Tsy moves and softer than expected domestic GDP data (which revealed unexpected downticks in both the Q/Q and annualised measures) at the fore. Note that the moves remain modest, with futures off of best levels, last +12, and the major cash JGB benchmarks running flat to 1.5bp richer across the curve, led by a bid in the 20- to 30-Year zone.

• Elsewhere, the Japanese economy minister has pointed to no change in the view that the Japanese economy is picking up gradually (post-GDP), once again highlighting well-defined global economic risks and the need to pay attention to them.