Off Lows In Tokyo

JGB futures edged away from their overnight trough during the Tokyo session, although the contract has stuck to a narrow range, -20 vs. settlement into the close.

• Cash JGBs run little changed to 2.5bp cheaper on the day, bear steepening. Much of the long end has stuck to ranges established in early dealing after the initial cheapening adjustment in lieu of Tuesday’s core global FI moves (10s being the exception, although they are off session cheaps).
• There hasn’t been anything in the way of meaningful domestic news flow to digest since the Tokyo open, although there has been confirmation that U.S. House Speaker Pelosi will visit Japan on Thursday, in what will be another leg of her heavily-watched trip to the Asia-Pacific region.
• The breakdown of the latest round of BoJ Rinban operations revealed slight moderations in cover ratios across the 1- to 5- & 10- to 25-Year zones of the curve, although that didn’t have any tangible impact on JGBs.
• 10-Year JGBi supply headlines tomorrow’s docket.