Futures At Session Highs Ahead OF US CPI Data, 30Y Supply Tomorrow

JGB futures are higher, +23 compared to the settlement levels, and at session highs.

• There hasn’t been much in the way of domestic drivers to flag given the relatively light local calendar. Leading & Coincident Indices are due later but are unlikely to be market movers.
• OECD urges Japan's central bank to gradually raise interest rates – Reuters.
• Asian participants have opted to remain on the sidelines concerning US tsys in anticipation of the pivotal US CPI data scheduled for later today. As a result, cash US tsys have experienced minimal changes during today's Asia-Pacific session. This cautious stance suggests a wait-and-see approach among Asian investors, highlighting the significance they place on the upcoming US CPI data and its potential impact on market dynamics.
• Cash JGBs are dealing mixed. The benchmark 10-year yield is 0.4bp lower at 0.582% versus a session high of 0.628%.
• The swap curve has slightly twist-steepened, with rates 0.1bp lower to 1bp higher. Swap spreads are wider.
• Tomorrow, the local calendar sees Weekly International Investment Flows, BoP Current Account Balance and Bank Lending data.
• The MoF will tomorrow sell Y900bn 30-year JGBs.