JGBS: Futures Downticked Overnight Friday, More US Tariff News Due Today

In post-Tokyo trade, JGB futures closed with a downtick, -2 compared to settlement levels, after US tsys finished cheaper on Friday. 

• US tsys gapped richer after lower-than-expected jobs gains for January, and a small dip in the unemployment rate -- but quickly reversed on robust two-month net revisions along with a smaller-than-expected benchmark revision.
• Wage growth meanwhile also surprisingly accelerated but against a notable caveat of average weekly hours sliding to lows last seen in the depths of the pandemic and mid-2010.
• Fed rate cut expectations were trimmed to 37bp of cuts for 2025 vs 43bp pre-data.
• Headlines have crossed from Bloomberg, with US President Trump stating that the US will announce tariffs of 25% on all steel and aluminium imports from Monday.
• The meeting between Japan PM Ishiba and US President Trump from late last week will likely be seen as a success from a Japanese standpoint. The US leader doesn't appear to have Japan in his crosshairs from a trade standpoint at this stage, although does want to eliminate the trade deficit the US has with Japan. Ishiba spoke about raising Japan's imports of US LNG and boosting Japan's investment in the US.
• Today, the local calendar will see Current Account Balance, Bank Lending and Eco Watchers Survey.