Futures Holding In Negative Territory In Tokyo Morning Trade

JGB futures are holding in negative territory, -8 compared to settlement levels, in Tokyo morning trade.

• Bloomberg reports that weak results at next month’s bond auctions and rapid yen losses may force the BoJ to adjust its policy stance, according to Shoki Omori, chief desk strategist at Mizuho Securities in Tokyo. The most likely scenario for now though, is that the BOJ maintain current policy at its September meeting as there hasn’t been enough time to evaluate the impact of the July tweak. (See link)
• Bloomberg reports that a key theme emerging from the formal Jackson Hole conference proceedings and conversations on the sidelines was difficulties adapting to forces outside the control of monetary authorities. The attendees discussed topics including productivity and innovation, bond-market structure, global supply chains and rising public debt levels. (See link)
• US tsys have opened dealing ~1bp cheaper across the major benchmarks. Local participants are digesting Fed Chair Powell's remarks at the Jackson Hole Symposium on Friday which were thought to be balanced.
• Cash JGBs are flat to 0.7bp cheaper. The benchmark 7- and 10-year yield is 0.7bp higher at respectively 0.432% and 0.668%.
• Swap rates are flat to 0.7bp higher, with swap spreads mixed.
• Later today the local calendar sees June Leading and Coincident Indices.