Sideways Morning For Futures

JGB futures hit the lunch bell 11 ticks above Friday’s settlement, hovering around late overnight levels for the duration of the morning session, insulated from the broader cheapening pressures that kicked into wider core global fixed income markets. Cash JGBs see outperformance for 7s, which richened by a little over 1bp during the morning (pointing to a futures-driven bid), while the remainder of the curve was mixed, -/+0.5bp off Friday’s closing levels. Domestic flow remains relatively light, outside of speculation in the local press re: the potential for an upgrade in the government’s view on economic growth covering FY22, owing to the impact of its well-documented fiscal spending package.