BoJ Dep. Gov. Uchida's Comments Move The Market, 5Y Supply Tomorrow

JGB futures are sitting with an uptick, +2 compared to the settlement levels, after a volatile session. JBH4 was sharply lower in morning trade before spiking higher following BoJ Deputy Governor Shinichi Uchida's speech to local business leaders in Nara.

• (MNI) BoJ Deputy Governor Shinichi Uchida's comments on Thursday have somewhat weakened the chance of a March policy change, despite noting the probability of the Japanese economy achieving the 2% price target had increased. A press conference is due at 1430 JT. (See link)
• This morning's data drop of weekly International Investment Flows, BoP Current Account Balance and Bank Lending data failed to be market-moving, as expected. Also, Tokyo Avg Office Vacancies declined to 5.83% in January from 6.03% in December.
• Cash JGBs are dealing flat to 2bps richer after cheapening 1-2bps in pre-Uchida dealings. The benchmark 10-year yield is 1.0bp lower at 0.708% after dealing as high as 0.734% in morning trade.
• Swaps rates are flat to 1bp lower. Swap spreads are generally tighter out to the 5-year and slightly wider beyond.
• Tomorrow, the local calendar is light, with M2 & M3 Money Stock data as the highlights. The MoF plans to sell Y2.5tn of 5-year JGBs.