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Futures Firm In Overnight Trade

JGBS

JGB futures added 17 ticks in overnight dealing, tracking wider global core FI moves, initially extending through the late Tokyo lows, before recovering some poise as U.S. equities came under pressure.

  • There hasn’t been much in the way of market-moving domestic news flow to account for since Thursday’s close.
  • That will leave most of the focus on FX intervention matters, with USD/JPY hovering just below Y145, as well as the continued test of the BoJ’s YCC settings (JPX data revealed only modest, incremental selling of JGB futures on the part of foreign investors last week, suggesting the super-long end of the cash curve may be that cohort’s weapon of choice during the latest round of global core FI cheapening).
  • The latest labour market report, along with retail sales and industrial production data, provide the highlights of the domestic docket ahead of the weekend.
  • Elsewhere, BoJ Rinban operations covering 3- to 25+-Year JGBs are due.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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