Two-Way Trade During The Tokyo Morning

JGB futures pared ~20 ticks of their overnight gain at the Tokyo re-open, with U.S. Tsys back from Tuesday’s highs, although the contract has since bounced, last trading +51 as we work towards the lunch break. The Tokyo morning session has been a case of deciphering the impetus from offshore FI markets, with the overnight rally ultimately exerting its influence. Cash JGBs run ~2-5bp richer on the day, as 20s lead, with 5-Year JGBs back below 0% for the first time since Feb 4. The BoJ also tendered its offer for Rinban operations covering 1- to 5- & 10- to 25-Year JGBs, with results due during the lunch break. Local data saw the Q4 CapEx metrics beat expectations, although this would have had a negligible (at best) impact on JGBs.