Futures Little Changed After Labour Market Data

In Tokyo morning trade, JGB futures are slightly stronger, +1 compared to settlement levels.

• (Bloomberg) -- Bank of Japan Governor Kazuo Ueda said the Bank of Japan’s price target is not yet in sight, tempering market speculation that the bank’s first rate hike since 2007 is just around the corner. (See link ICYMI)
• Jibun Bank and S&P Global released February's Manufacturing PMI. It showed that the Index fell to 47.2 from 48 in January versus 47.7 a year ago. It was the lowest reading since August 2020 and the ninth consecutive month of contraction.
• Earlier, the January jobless rate and job-to-applicant ratio printed in line with market expectations. The jobless rate printing at 2.4% (which was down from a revised 2.5% in Dec last year). This lows back in the unemployment rate back to early 2020. The job-to-applicant ratio at 1.27 was in line with the prior outcome.
• Cash JGBs are cheaper across maturities, with yield movement ranging from flat (2-year) to 1.7bps higher (1-year). The benchmark 10-year yield is 0.7bp higher at 0.716% versus the Nov-Dec rally low of 0.555% and the February high of 0.772%.
• Swaps are slightly cheaper, with swap spreads mostly tighter.