Futures Higher Overnight, Small Rally In US Tsys

In post-Tokyo trade, JGB futures are higher, closing +9 compared to settlement levels, after US tsys finished Thursday’s NY session moderately richer. US tsys bull-flattened, with yields flat to 3bps lower. US tsys had initially gapped significantly richer after lower-than-expected Retail Sales (-0.8% m/m vs. -0.2% est. and 0.6% prior), however, those gains were subsequently pared.

• On the positive side, Initial Jobless Claims printed less than expected (212k vs. 220 est), while the volatile Empire Manufacturing Survey jumped from -43.7 to -12.5. The Philly Fed Business Outlook Index also recovered from -10.6 to +5.2.
• Elsewhere, Bitcoin was holding above $US52,000, oil briefly rallied above $US83, gold edged above $US2000 and iron ore moved back towards $US130.
• Like Japan, the UK economy was in a technical recession at the end of 2023, with GDP contracting by 0.3% in the three months to December. It had declined by 0.1% in Q3.
• Today, the local calendar sees Weekly International Investment Flows and the Tertiary Industry Index. The MoF will also conduct an Auction for Enhanced-Liquidity 15.5-39-years.