JGB futures leak lower to start the weak, with Tsys on the defensive and Tokyo playing catch up after the elongated weekend. The contract deals -45 at typing 30 ticks off of last week’s base. A break through the 147.94 level would expose the June cycle lows.
- Cash JGBs run 1-5bp cheaper across the curve, bear steepening, with 10-Year JGB yields back to the upper limit permitted under the BoJ’s YCC framework.
- Eyes on the BoJ Rinban operations, due in just under an hour, with the potential for a further upsizing of purchases (to defend the Bank’s YCC settings) given the moves seen in core global FI markets over the last couple of sessions.