Futures Fully Pare Overnight Losses

JGB futures continue their bounce from 151.00 in early Tokyo trade, with the contract fully unwinding its overnight sell off, last +3. Cash JGBs run within -/+ 0.5bp of Thursday’s closing levels. Tokyo CPI data was pretty much in line with broader expectations, while wage and household spending data came down on the softer side. The miss in the wage & household spending data may be providing some support for the space, while the allure on mutli-month highs for yields across the longer end of the curve may also be providing some demand. Focus now moves to this afternoon’s 30-Year JGB supply (this may provide a little bit of a limit re: demand for long bonds during the morning session), which comes ahead of the elongated Tokyo weekend.