Futures Firmer After Two-Way Overnight Trade

JGB futures tracked the broader swings in global core FI markets in overnight dealing, pulling back from their early session peaks on the back of the firmer than expected U.S. CPI data, then rallying from post-data lows as stagflation worry intensified, facilitating a challenge of early session highs, which held. That left the contract +10 at the bell.

• Familiar matters have dominated local press since the Tokyo close, with another rise in the temporary fuel subsidy confirmed, while the Nikkei reported that “the Japanese government is considering exempting certain inbound travelers from the COVID-19 test now required at ports of entry, starting as early as June,” citing sources.
• Thursday’s domestic docket is headlined by 30-Year JGB supply, with BoP data, the latest economy watchers survey and the summary of opinions from the BoJ’s April MPM also due.