Stronger But Off Bests At Lunch, BoJ Gov. Ueda Discusses Inflation

At the Tokyo lunch break, JGB futures are stronger, reaching a session high of 148.79 and currently standing at 148.69, +15 compared to the settlement levels.

• Cash tsys are little changed in early Asia-Pac trade as a bill to suspend the $31.4 trillion U.S. debt ceiling advanced on Tuesday when a key House of Representatives committee voted to send it to the full chamber for a Wednesday vote. The Republican-controlled House Rules Committee voted 7-6 to advance the bill to the floor for a vote on Wednesday.
• Outside of the previously outlined weaker-than-expected economic data, BoJ Governor Ueda said in a speech at a BOJ conference in Tokyo that it’s extremely important to carefully analyse various economic data and examine underlying inflation trends. Adding, whether inflation is caused by demand or supply has very important implications for monetary policy. (link)
• Cash JGBs hold their twist flattening at the Tokyo session lunch break with yields lower beyond the 1-year zone. The benchmark 10-year yield is 0.7bp lower at 0.428%. The outperformer on the curve is the 20- to 40-year zone, which is 1.5 to 1.7bp lower.
• The swaps curve has bull flattened with rates 0.3-2.2bp lower. Swap spreads are tighter across the curve.