JGBS: Cash Bonds Richer At Tokyo Lunch Break
At the Tokyo lunch break, JGB futures are stronger, +32 compared to the settlement levels, but well off the session’s best levels.
- Cash US tsys are 1-3bps cheaper in today’s Asia-Pac session after yesterday’s solid gains. Earlier headlines crossed that the US house had narrowly passed a US budget resolution, which calls for extended large tax cuts and cuts to Federal spending (see this AP link).
- Cash JGBs are 2-4bps richer across benchmarks. The benchmark 10-year yield is 2.8bps lower at 1.345% versus the cycle high of 1.466% set last week.
- Swaps rates are ~1bp lower. Swap spreads are wider.
- Today, the local calendar will see Leading and Coincident Indices later.
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