Lead 10-year JGB futures open lower following an Monday's fall in U.S. Treasury prices and amid caution ahead of an afternoon 10-year note auction; the lead June contract is currently down 0.19 at 143.60. "Investors are expected to head into the auction with caution amid growing views that the market has gotten too expensive," says Mitsubishi UFJ Morgan Stanley Securities chief strategist Jun Ishii. But he adds that the cautious mood could also serve to reduce chances of any negative surprises from the auction. "The market would trim losses if the auction turns out to be smooth," he says. 10-year cash bonds are also off, sending the yield up 2 basis points to 0.835%, vs the 0.810%-0.835% range tipped.
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