Futures Cheaper Overnight With US Tsys, Light Local Calendar

In post-Tokyo trade, JGB futures are weaker, closing -10 compared to settlement levels, after US tsys finished with yields flat to 3bps higher and the curve steeper. This came despite weaker-than-expected US data across all releases.

• Durable Goods Orders printed -6.1% vs. -5.0% est, with ex-Trans -0.3% vs. 0.2% est and prior down revised to -0.1% from 0.5%. FHFA house prices increased less than expected in Dec, 0.1% m/m (cons 0.3) after 0.31% m/m, its softest monthly print since Jan’23. Conf. Board consumer confidence saw a sizeable miss in February, falling to 106.7 (cons 115.0) after a downward revised 110.9 (initial 114.8).
• US tsys have been under selling pressure for most of February as expectations for aggressive Fed easing have been pared after hawkish Fedspeak and hot inflation data.
• Today, the local calendar is light, with Leading & Coincident Indices as the highlight.
• The BoJ will also conduct Rinban operations covering 5- to 25-year+ JGBs.