January 29, 2023 23:42 GMT
Domestic Vs. Global Factors
JGBS
JGB futures extended on their Tokyo CPI-driven weakness in the final overnight session of last week, closing -14 after a recovery from session cheaps allowed the contract to stabilise.
- Feed through from the Friday bounce in U.S. Tsys will be assessed against an uptick in oil prices during the early rounds of Asia dealing (in lieu of drone strikes on a couple of Iranian facilities over the weekend, with Israel seemingly the perpetrator).
- Speculation re: the future for BoJ policy continues to do the rounds in the Japanese press, with another leading bank CEO providing his views over the weekend.
- Meanwhile, there was confirmation that China has resumed the issuance of ordinary visas for Japanese citizens travelling to the mainland after the recent diplomatic spat surrounding travel restrictions between the two countries.
- BoJ Rinban operations covering 3- to 25+-Year JGBs headline the domestic docket today, with the BoJ set to formally outline its February purchase plan after the Tokyo close.
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