Futures Higher Overnight

JGB futures generally tracked the lead of U.S. Tsys during the overnight session, firming in the wake of the U.S. CPI print before backing off from best levels, then firming once again in the wake of the minutes covering the most recent FOMC meeting (although not testing overnight bests). That left the contract +11 at the close of post-Tokyo trade.

• More recently, the latest North Korean (seemingly ballistic) missile launch triggered a cautionary warning for inhabitants of Hokkaido to seek shelter, although that advisory has since been lifted, with the Japanese coast guard now indicating that the missile has likely already fallen somewhere in the sea.
• We have also had comments from BoJ Governor Ueda, who pointed to a need to exercise more caution re: inflation undershooting the Bank’s goal than overshooting it on a sustainable basis, flagging differences between inflation in Japan vs. its major global peers. This once again places Ueda on the dovish side of the broader spectrum, at least for now.
• Money stock & weekly international security flow data headline the domestic data docket today, with the latest liquidity enhancement auction covering off-the-run 15.5- to 39-Year JGBs also due.