Super-Long Payside Flows Helping The Space To Cheapen Again

JGB futures have been a little more reluctant to extend on their overnight session trough than their overnight peers, although the contract has recently moved to fresh session lows, -16 on the day. Note that supply dynamics present the major domestic point of interest today, with the MoF set to come to market with 10-Year JGBs. Still, 10s represent the only point on the cash JGB curve that is firmer on the day (to the tune of 0.5bp), while the remaining benchmarks run little changed to 2.5bp cheaper, with the super-long end leading the weakness, once again aided by payside swap flow as 20+-Year swap spread widen. Slightly softer than expected domestic wage data failed to impact the space.