Slightly Stronger At Lunch, US Tsys Stronger Aided By China Data

JGB futures are slightly stronger at the lunch break, +5 versus settlement levels, after experiencing some weakness earlier in the day. As there were no major domestic data releases or supply side factors such as JGB auctions or BoJ bond purchases, local traders were likely focused on headlines and US tsys watch ahead of the release of the Euro Area's Q1 GDP and US Retail Sales later today.

• Cash US tsys are 2-3bp lower in early Asia-Pac trade, assisted by disappointing monthly economic data from China.
• The Japanese government will allow seven of nation’s major power companies to raise household electricity prices from June, a move likely to add to inflation. Price hikes by the companies will be between 14% to 42%, Chief Cabinet Secretary Hirokazu Matsuno said in a press conference Tuesday morning.
• Cash JGBs are mixed at the lunch break in the Tokyo session with yield moves ranging from 0.4bp lower (30-year) to 0.4bp higher (1-year). The benchmark 10-year yield is 0.1bp higher at 0.408%, after yesterday’s 1.6bp increase.
• Swap rates are 0.1bp higher (1-year) to 0.3bp lower (30-year) with swap spreads tighter across the curve.