BoJ Ueda Answering Questions In Parliament

In Tokyo morning trade, JGB futures are weaker but above overnight closing levels, -17 compared to settlement levels.

• Japan's national average core consumer price index (excluding fresh food) rose 2.7% from the year earlier in July, picking up from the growth of 2.6% marked in June. Energy rose 12.0% y/y, up from the previous 7.7% y/y growth.
• The underlying inflation rate measured by the core-core CPI (excluding fresh food and energy) increased 1.9% y/y, slower than the 2.2% growth last month. Prices for ex-perishables rose 2.6% y/y, lower than the 2.8% y/y increase in June.
• Cash US tsys are 1-3bps richer in today’s Asia-Pac session, after yesterday’s sell-off.
• BoJ Governor Ueda is currently responding to questions from lawmakers in the lower house of parliament. This will be followed by another session in the upper house beginning at 1300 JT. Each session is set to last two and a half hours.
• The cash JGB curve has twist-flattened, pivoting at the 30-year, with yields 2bps higher to 0.5bp lower. The benchmark 10-year yield is 1.8bps higher at 0.894% versus the cycle high of 1.108%.
• Swaps are mixed, with rates little changed out to the 10-year and 3bps higher beyond. Swap spreads are tighter out to the 10-year zone and wider beyond.