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Steepening Extends

JGBS

The curve continued to steepen throughout the Tokyo morning, with the major cash JGB benchmarks running little changed to ~5.5bp cheaper on the day, as the 20+-Year sector reversed all of yesterday’s gains and more.

  • It would seem that Monday’s weakness in core global FI markets seemingly applied some pressure, even as U.S. Tsys rallied during early Asia-Pac dealing.
  • JGB futures nudged higher, to print -1 at the break.
  • Domestic headline flow saw familiar rhetoric re: the aim and stance of BoJ monetary policy, as BoJ Governor Kuroda made his latest appearance in front of parliament.
  • Elsewhere, familiar rhetoric was deployed by Finance Minister Suzuki when it comes to FX intervention matters.
  • This afternoon’s 10-Year JGB supply headlines the domestic docket.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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