Futures Downtick As US Tsys Consolidate After Weaker Than Expected Data, Heavy Local Calendar

In post-Tokyo trade, JGB futures uptick, closing +3 compared to settlement levels.

• US tsys richened ~1bp across benchmarks after soft GDP (2.1% versus 2.4% prior) and labour market (ADP printed 177k versus 195k expected) data added to signs that the economy is slowing enough to limit further tightening by the US Federal Reserve.
• The focus now turns to the release of the July PCE deflator, MNI Chicago PMI, Challenger Job Cuts and weekly Jobless Claims data later today, along with Fedspeak from Bostic and Collins.
• Elsewhere, inflation slowed less than expected in Germany and rose to a 3-month high in Spain ahead of the Eurozone CPI release this evening. EGB yields rose following the inflation data before partially retracing and ending the session 3bp higher across the curve.
• Locally there is a busy data calendar today, with July retail sales, IP and housing starts due, along with weekly investment flows.
• BoJ Board member Nakamura also speaks at 10:30 local time (02:30 BST). BoJ Board Member Naoki Tamura said on Wednesday the achievement of the bank's 2% price target was clearly in view, however, the continuation of the easy policy was appropriate as more time is needed.