Tsy Move & Ueda Remarks Help The Space to Richen

Bund futures register fresh session highs although remain comfortably within the confines of the range established yesterday, showing near neutral back above 134.00. The previously alluded to bid in U.S Tsys, coupled with broader market reaction to the latest batch of comments from BoJ Governor Ueda, who “expects year-on-year core inflation to rise again following what is set to be a dip toward the middle of fiscal 2023, though this recovery is not certain,” per our policy team, are the culprits for the move (note that some other wires led with more hawkish titles, as opposed to the caveated nature of the comments). The German cash curve flattens, with the major benchmarks now 1-2bp richer on the day.”