Closed Post-Tokyo Trading Ahead Of Weekend On A Negative Note

In post-Tokyo trade ahead of the weekend, JGB futures closed on a negative note, -34 compared to settlement levels, after US tsys finished 3bps richer to 5bps cheaper across the major benchmarks. The curve twist steepened pivoting on 5s. Tsys see-sawed in the aftermath of the latest NFP report, the headline jobs figure was the lowest in 3 years however Average Hourly Earnings were firmer than forecast. However recent ranges were respected, and moves were modest.

• Chicago Fed President Goolsbee, generally considered a dovish FOMC member, noted that the projection for modest hikes in 2023 is reasonable. He reiterated comments seen in the previous communique that the labour market remains strong, and inflation hasn't come down as much as expected.
• Japanese companies sold 7.1 trillion yen ($49.6 billion) in yen bonds in the first half ended June, a record amount for the period, as indications that the BOJ will keep its super-easy policy for now prompted issuers to seek cheap funds. (See link)
• Today, the local data calendar has May trade balance figures and the current account. Bank lending for June is also on tap, while later on the eco watchers survey is out.
• Today BoJ Rinban operations covering 1-3-year and 5-25+-Year JGBs are scheduled.
• In Asia today official CPI and PPI from China provide the highlight.