Twist-Flattening, Light Domestic Calendar, Narrow Ranges

JGB futures are weaker, -6 compared to the settlement levels after dealing in a narrow range in today’s Tokyo session.

• Industrial Production was revised down to -0.6% in the final report. Capacity Utilisation fell 0.5% in February.
• (Bloomberg) Many Japanese companies are paying more to raise money from shorter-tenor notes as the Bank of Japan prepares to wind down corporate bond purchases as part of its historic move away from ultra-accommodative policy. (See link)
• Cash US tsys are dealing 1-2bps richer in today's Asia-Pac session after finishing Thursday with a slight twist-steepening.
• The cash JGB curve has twist-flattened, pivoting at the 5s, with yields 0.5bp higher to 4.0bps lower. The benchmark 10-year yield is 2.0bps lower at 0.851% versus the YTD high of 0.871% set yesterday.
• Swaps are richer, with rates 1-3bps lower across maturities. Swap spreads are tighter out to the 10-year and wider beyond.
• On Monday, the local calendar is light, with Core Machine Orders as the highlight.