Overnight Weakness In Futures Pared, Rinban Operations Due

In Tokyo morning trade, JGB futures have slightly pared overnight losses to -6 compared to settlement levels.

• Japan’s government cut its monthly view on the economy for the first time since January, reflecting concerns over the outlook for the global economy. The government cut its view on business spending for the first time in nearly two years, while it didn’t raise any of its assessments on other economic components. (See link)
• Today, the local calendar is empty, apart from BOJ Rinban operations covering 1-10-year and 25-year+ JGBs.
• Cash US tsys are slightly cheaper in the Asia-Pac session as the market ebbs towards the Thanksgiving holiday.
• The cash JGB curve has bear-steepened. The benchmark 10-year yield is 0.8bp higher at 0.711% versus the cycle high of 0.97% set in late October and the BOJ's 1% YCC reference rate. The 20-year is 2.1bps higher at 1.427% after yesterday's post-20Y auction rally.
• The swaps curve has bear-steepened too, with swap spreads generally wider.
• A reminder that the local market is closed tomorrow for the Labour Thanksgiving holiday. National CPI is due for release on Friday.