Super-Long End Sees A Bid, Resulting In Curve Flattening

The JGB curve twist flattened during the Tokyo morning, with demand for the long end remaining apparent from the open. Paper out to 10s dealt either side of unchanged, while 20+-Year paper sits 1.5-2.5bp richer.

• Note that a Prologis multi-tranche round of JPY issuance has come to market, covering maturities of 7- to 40-Years.
• Ongoing comments from Japanese Economy Minister Nishimura have pointed to a desire for a stable JPY, with no specific comments on FX levels (the default government lines surrounding the matter). Nishimura also flagged a greater sense of urgency in the Japanese corporate sphere, with growing openness to change and evolution. He also pointed to a need for exporters to take advantage of a weaker JPY, alongside a desire to strengthen Japan’s growth capacity. None of this should be market moving for JGBs.