Most Of Early Cheapening Holds

The bid in U.S. Tsys allowed JGB futures to trade away from their Tokyo morning lows, after having a brief and limited look below their overnight session base, leaving the contract -39 at the bell.

• Various policymakers have stressed the relative soundness of the Japanese banking sector, while soon to be departing BoJ Governor Kuroda has gone over old gone re: inflation and the need for continued easing.
• The 5- to 20-Year zone leads the broader weakness on the JGB curve, although most of the benchmarks have finished the morning session a little off of their session cheaps, running 0.5-2.0bp cheaper as of typing.
• Moves have generally been relatively limited after the initial cheapening impulse took hold.
• 40-Year JGB supply headline this afternoon.