August 04, 2022 23:39 GMT
JGB futures added 14 ticks in overnight dealing, tracking the gyrations witnessed in broader core global FI markets, going out just shy of best levels.
- The already released, firmer than expected domestic household spending and wage data may apply some modest pressure to JGB futures around the Tokyo re-open, although an uptick observed in U.S. Tsy futures and ACGBs will likely provide some spill over-related counter.
- Note that Yomiuri has suggested that the Japanese Ministry of Defence's budget request for FY23 will reach a record high of Y5.5tn, on top of "item requests" which will boost the final amount, citing the latest meeting of the ruling Liberal Democratic Party's Security Research Commission.
- On the defence front it is worth noting that since yesterday’s Tokyo close we have seen a Chinese missile launch over Taiwan, with some of the missiles landing in Japan’s EEZ. This comes after a bilateral meeting between the Chinese & Japanese Foreign Ministers was cancelled.