- JGB closes weaker amid late-day selloff
- Early 7y offers; Longs bid
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JGB closes weaker amid late-day selloff
JGB future was firmer in the morning and was up by 27-ticks soon after market open, following a strong rally in US treasuries on Thursday.
In overnight trading, some key US treasury yield fell by 10bps intraday following some weak domestic data.
The gains was unable to sustain and a late-day selloff saw the lead bond future closing the day 3-ticks lower at 148.94. The yield on the benchmark 10-year JGB was up 0.5bp to recent high of 0.253%, or above BOJ’s upper limit of 0.25%.
Early 7y offers; Longs bid
Despite earlier gains in the underling cash bond market, the majority of JPY swaps have generally been bid on the day, with stronger paying after lunch break.
10-year, for example, has been slightly better bid with the majority of the trades between 0.6% and 0.615% on the day, up from previous close of 0.595%. 20-year traded in a tight range of 4.25bps higher of around 1.04875%, steepening 10s/20s by about 0.25bp in the morning session.
Earlier rally in bond futures saw light receiving in 7-year at a basis point lower of 0.41% near market open, which was then replaced by paying at up to 0.43% near market close. 2s/7s swaps flattened out by a basis point in the morning before steepening by a basis point to 30.75bps in the afternoon session.