BoJ Matters Eyed

U.S. Tsy futures have nudged lower after the elongated weekend, which may provide some modest downward impetus for the JGB space around the Tokyo open.

• Note that domestic headline flow has been relatively light over the weekend, with little in the way of market moving matters observed.
• A reminder that the latest BBG source piece, released after the Tokyo close on Friday, focused on the economic projections that will be released alongside the Bank’s next monetary policy decision. The piece suggested that “the Bank of Japan is likely to consider notable changes in its inflation and growth forecasts later this month mainly due to soaring oil and commodity prices, gains that aren’t viewed as sustainable, according to people familiar with the matter. The central bank will probably raise its projection for growth in key consumer prices to between around 1.5% and 1.9% for the year started this month, compared with a 1.1% forecast in January, according to the people. The BoJ will also probably lower its growth forecast for the year from its current 3.8% projection, the people said.”
• Looking ahead, there isn’t anything of note on the Japanese economic docket on Monday, with participants set to focus on wider macro flows and the latest round of comments from BoJ Governor Kuroda (which will be made in the Diet from 10:05 Tokyo/02:05 London).