March 10, 2023 03:39 GMT
Sharply Firmer On No Change From BoJ, Hawkish Positioning Unwind Seemingly Evident
JGBs firm further in the early rounds of the Tokyo afternoon session after the BoJ stood pat. 10-Year yields pull away from the BoJ’s YCC cap to print below the 0.45% mark. Futures extend higher in an aggressive fashion, lasting printing +110 ticks. 7s lead the wider cash curve on the bid in futures, while the move in futures and steepening of the curve beyond the 7-Year point to the continued unwind of hawkish BoJ positioning. Swap rates are 2-10bp lower, bull flattening, with swap spreads tighter across the curve outside of 7s.