Futures Build On Tuesday Bid Overnight

JGB futures extended on their Tokyo bid in overnight dealing, finishing +17 as international investors reacted to the second round of confirmation hearings for the BoJ Deputy Governors-in-waiting, which played down the need for imminent policy adjustment.

• Elsewhere, the BoJ delivered nothing in the way of tweaks to its March Rinban plan after hours on Tuesday, while it once again noted that it will conduct fixed rate purchase operations for continuous days “for an extended period of time” and announced the relaxation of the terms and conditions for the Securities Lending Facility for the cheapest-to-deliver JGB issues. The latter will take place “for the time being, in order to ensure stability in the market by easing excessive tightening in supply and demand of Japanese government securities in the repo market.”
• Wednesday’s local highlights include an address from BoJ’s Nakagawa and final Jibun Bank manufacturing PMI.