Cheaper Apart From the 10Y, US CPI & FOMC Minutes Due, 20Y Supply Tomorrow

JGB futures are holding weaker, -8 compared to the settlement levels.

• There haven't been domestic data releases to highlight, apart from the previously mentioned PPI and Bank Lending data.
• The domestic market seems to have been influenced by remarks made by BoJ Governor Ueda in his Semi-Annual Report on Currency and Monetary Control. In addition to previously outlined comments, Ueda also said it’s undesirable for a central bank to hold a large volume of government bonds on the scale of the BOJ’s holdings over the long term. (See link)
• (Reuters) - BoJ Governor Ueda also said the central bank would not directly respond to currency moves in setting monetary policy, brushing aside market speculation that the yen's sharp falls could force it to raise interest rates. (See link)
• Cash US tsys are dealing ~1bp richer in today’s Asia-Pac session ahead of today’s US CPI data and the release of the FOMC Minutes.
• Cash JGBs are flat to 2bps cheaper, apart from the 10-year. The benchmark 10-year yield is 0.7bp lower at 0.793% versus the YTD high of 0.802%, set earlier in the week.
• The swaps curve has bear-steepened, with rates 1-3bps higher.
• Tomorrow, the local calendar will see International Investment Flow, Money Stock and Tokyo Avg Office Vacancies data alongside 20-year supply.