Futures Hold Narrow Range, Suzuki Plays A Straight Bat

JGB futures generally followed oscillations in the wider core global FI space during the Tokyo morning, fading from best levels into the lunch break to finish the morning session -2. Direction on the wider JGB curve was mixed, with the major cash JGB benchmarks running ~0.5bp either side of unchanged.

• Local data had no tangible impact on the space.
• Local headline flow was dominated by comments from Finance Minister Suzuki, who outlined the government’s agreement with the BoJ view re: the need for more meaningful wage increases, while stressing that it is to early to discuss the idea of a revision to the BoJ-government accord (likely eying the impending departure of Governor Kuroda as the tipping point on that front).
• 2-Year JGB supply headlines domestically this afternoon.