Futures Flat Overnight, Ueda Up Again Today

JGB futures finished the final overnight trading session of last week -1, with the initial post-Tokyo bid, linked to international participants reacting to BoJ Governor-in-waiting Ueda’s confirmation hearing in the lower house, fading on the back of the global core FI impulse, as firmer than expected U.S. PCE data headlined ahead of the weekend.

• A quick reminder that Ueda’s initial comments were very Kuroda-esque, while he pointed to a near-term peak in the inflationary impulse, as well as tipping his hat to the potential for YCC adjustments at some point down the road, while noting that he cognisant of the side effects of prolonged ultra-loose monetary policy settings.
• Ueda will appear in front of the upper house of parliament this afternoon, in another confirmation hearing.
• Elsewhere, BoJ Rinban operations covering 3- to 25-Year JGBs headline the local docket today.
• Note that cash 10-Year JGBs failed to trade on Friday, the first such instance observed since December, with the benchmark marking around the 0.50% BoJ YCC cap for the duration of the session.
• There hasn’t been much in the way of meaningful domestic headline flow over the weekend, with most of the focus falling on Ueda’s Friday comments.