Futures Cheapen Overnight; 10-Year JGB Yields Remain Elevated

JGB futures have tracked the cheapening in core global FI overnight, with JGBZ2 going out at session lows, -23 at 148.33 last.

• Domestic headline flow has been light, with participants eyeing JPY-related developments (USD/JPY last operates around the 144.00 mark) after Thursday saw a three-way meeting between Japan’s MoF, BoJ, and FSA.
• To recap, USD/JPY nudged lower after the meeting was announced and convened during Thursday’s session (approx. 4.45pm JST) in response to sharp moves in the yen. The meeting saw pledges of “necessary action” in the face of yen volatility, although government officials refused to comment on the possibility of yen-buying intervention.
• Elsewhere, a note that 10-Year JGB yields sit at 0.243% at typing, with very little by way of cheapening space remaining for 10s before reaching the 0.25% upper limit of the BoJ’s tolerated trading band.
• Money supply for Aug will cross in ~10 minutes, with no further economic data releases of note scheduled.