Futures Higher Overnight After A Rally In Global Bonds, Labour Market Data  Slightly Better

In post-Tokyo trade, JGB futures are richer, closing +15 compared to settlement levels, after US tsys rally with EGBs after recent dovish comments from several ECB officials. The 10-year Bund yield fell 6bps to 2.23%, while US tsys richened 3-6bps across benchmarks on Monday. Market participants await quarterly earnings reports and the FOMC Policy Decision.

• Overnight, the Treasury cut Jan-March borrow estimates from $816B to $760B and estimates April-June at $202bn. The refunding announcement is scheduled for Wednesday.
• The focus remains on the timing of the first FOMC rate cut since March 2020 in the lead-up to this Wednesday's policy announcement. No action is expected from the Fed Wednesday, but dealer estimates of when and by how much is varied (GS: 25bp cut in March, 5 total cuts in 2024 to 4.25%; DB 3.75% by year-end, UBS 2.75% year-end; flipside: Santander estimate is 50bp by year-end to 5%).
• December’s Jobless Rate and Job-To-Applicant Ratio both print slightly lower than unchanged estimates at 2.4% and 1.27 respectively versus 2.5% and 1.28 prior.
• 2-year JGB supply is due today.