Cheaper Overnight On Friday, BoJ: Market Has Varied Opinions On Bond Buying Taper

In post-Tokyo trade ahead of the weekend, JGB futures were weaker, closing -7 compared to settlement levels, after US equities and bonds posted broad declines to finish a volatile week. The tech-heavy Nasdaq 100 slid around 1%, while US tsys finished ~4bps cheaper. There was no data or obvious headline driver for the break lower on Friday.

• Volumes were light, however, as trading activity was restricted by the global IT outage that affected Microsoft Windows systems.
• US President Biden has pulled out as the Democratic candidate for November’s election. Biden has endorsed VP Harris, but it is not a given that she will automatically be the party’s candidate. Market moves in reaction to the news have been muted so far.
• (AFR) Alphabet and Tesla are set to release their quarterly earnings after the market closes on Tuesday. Traders will have to wait until the following week for Microsoft, Meta, Amazon and Apple to report. Nvidia reports in late August.
• Minutes from the Bank of Japan’s meetings with market participants to compile plans for the reduction of bond buying reveal a wide range of opinions on various topics including the pace of reductions. (See link)
• Today, the local calendar will see Tokyo Condominiums for Sale data alongside an Enhanced Liquidity Auction covering OTR 1-5-year JGBs.