A Modest Bid For Futures Come The End Of Overnight Trade

JGB futures ultimately nudged higher in overnight trade, adding 4 ticks after operating comfortably within Thursday’s range, while tracking the previously outlined impetus provided by core global FI markets.

• Note that Japan exchange data revealed that foreign investors were net sellers of JGB futures in the week ending 11 February (after two consecutive weeks of net buying). This isn’t a surprise given the market dynamic which ultimately resulted in a pre-emptive round of BoJ intervention when it came to enforcing the top end of its permitted 10-Year JGB yield trading band.
• In local news, late Thursday saw Japan's government lower its monthly main economic assessment for the first time since September 2021. It also downgraded its view on private consumption but upgraded its views on capital investment.
• Elsewhere, PM Kishida unveiled the initial loosening of border restrictions, which kick in on March 1, although tourist entry will still be forbidden at that time.
• Japanese national CPI data has just hit, with the 3 major metrics missing median exp. by 0.1ppt, nudging lower vs. the Dec readings. The local docket is virtually empty for the remainder of the day, outside of 3-month bill supply.