Drawing Support From BoJ

While TY futures recently showed to fresh session highs, the contract remains comfortably within yesterday’s range, last +0-08+ at 112-16+, 0-01 off the top of its 0-09+ session range.

• Cash Tsys run 1-3bp lower on the day, with a light flattening bias seen.
• The BoJ decision and post-meeting press conference failed to commit to any meaningful normalisation steps, providing a dovish impetus for broader markets given well-documented hawkish speculation seen in recent weeks (which had pared back from extremes on the back of pre-meeting dovish source reports).
• Fed Funds future discount ~20bp of cuts through March ’24, with a cumulative ~143bp of easing seen through ’24 on the whole.