JGB futures ticked away from their overnight base at the re-open, but have come under fresh pressure since, briefly showing below their overnight low as domestic participants react to Wednesday’s global core FI price action.

• Meanwhile, cash JGBs run flat to 2.0bp cheaper, with a fairly parallel shift along the curve, excluding 10s, which remain capped by the BoJ’s YCC settings.
• Local headline flow has seen familiar theoretic re: FX deployed by Finance Minister Suzuki, while trade balance data met wider exp.
• Note that the latest round of weekly international security flow revealed only modest net selling of Japanese bonds on the part of international investors (for a second consecutive week), with international investor appetite re: a test of the BoJ’s will when it comes to defending its YCC settings seemingly diminished (at least from a flow perspective).