Futures Flat Overnight

JGB futures coiled overnight, ultimately finishing at unchanged levels come the bell, with the broader cheapening in core global FI markets helping the contract back from its overnight peak.

• Political and COVID-related headlines will continue to dominate the domestic newswires, but there has been little in the way of notable impact on the JGB space from news flow surrounding these matters as of yet.
• A late Wednesday address from BoJ Governor Kuroda provided nothing in the way of notable, fresh information.
• The latest Bloomberg survey revealed that all but 1 of 47 economists think that a new Japanese Prime Minister is unlikely to change tack on fiscal and other policies sufficiently to force the BoJ to change its monetary policy settings.
• The latest round of Japanese monthly trade balance data will cross on Thursday, although it will be 20-Year JGB supply that presents the major event for market participants.