Shunt Higher Into The Close On News Of Trilateral BoJ-MoF-FSA Meeting

A relatively sedate session for JGBs saw an uptick in activity in the last hour of trade on the back of wires running headlines covering a Nikkei piece which pointed to a trilateral (regular) meeting between the BoJ, MoF & FSA, which will in part cover the collapse of Silicon Valley Bank. Wires have suggested the meeting will take place at 16:45 Tokyo time (07:45 London), with chief financial diplomat Kanda set to brief the media afterwards. Finance Minister Suzuki continued to attempt to play down any local worry re: the headwinds for global banks, while affirming the need for vigilance and flagging ongoing communication with international regulatory bodies on those matters.

• Before then JGB futures had nudged away from their early Tokyo base alongside a similar move in U.S. Tsys, with Fed pricing in the STIR space front and centre.
• JGB futures shunted higher into the close, fully reversing overnight session losses (which came on the back of support efforts surrounding Credit Suisse & First Republic Bank, as well as the latest ECB decision) at one point, before closing -17. Cash JGBs are flat to 2.5bp richer as 10s outperform, printing at 0.29% into the close.
• Remarks from outgoing BoJ Governor re: the limits of NIRP not being reached failed to move the market.
• Swap rates are higher on the day, with that curve steepening, which limited the bid in JGBs until the last hour or so, at least to some degree, as swap spreads widened.