[MARKET ANALYSIS] JGBs consolidate as Japan's FinMin surges calm

• UST Futures rebounds slightly following Tuesday’s selloff, which was led primarily by JGBs as worries over fiscal sustainability grow. Despite the worries of risk, the US 10-year yield remains below 4.3%.
• Bund Futures return above the 128 handle as global markets ‘calm down’ following the turmoil in JGBs.
• JGB Futures rebound slightly following the recent selloff that has seen 40-year yields reach levels not seen since their debut. Japan’s Finance Minister Katayama called on investors to calm down, stating that the fiscal policy has been responsible and sustainable, not expansionary. US Treasury Secretary Bessent also commented on the recent JGB slump, as USTs were also hit as a result.

Japan's Finance Minister has urged calm regarding JGB market fluctuations, indicating a focus on sustainable fiscal policy. This statement suggests that while concerns about fiscal sustainability persist, the slight rebound in JGBs could stabilize broader market sentiment, including for USTs and Bunds. Watch for potential implications on yield curves as traders digest these reassurances amid ongoing global volatility.