Futures Lower in Post-Tokyo Trade

In post-Tokyo trade, JGB futures closed weaker at 147.91, -13 compared to settlement levels. US Tsys were modestly weaker in NY trade with the 10-year yield 5bp higher.

• JGB's strength alongside global bonds yesterday confirmed the corrective nature of the latest pullback, according to MNI’s technical analyst. Attention remains on 149.53, the March 22 high.
• A Ministry of Economy, Trade and Industry panel of experts that has been reviewing requests by 7 Japanese utility companies to increase power prices is set to seek smaller hikes, NTV reports, citing the panel.
• A Bloomberg survey revealed that BoJ Governor Ueda is expected to maintain the current monetary stimulus at his first policy meeting on Friday. 90% of economists predict no change in interest rates and asset purchases, while some foresee adjustments to the yield curve control. A few predict a policy tweak or tightening step. The focus is on Ueda's opening changes after the BOJ's first leadership transition in ten years.
• Japan Post late yesterday became the latest to join the list of local participants that plan to cut foreign bond holdings this FY.
• Today on the data calendar we get weekly foreign investment flows, then later on is the coincident and leading indices (final readings for Feb).
• BoJ Rinban operations covering 1- to 25-Year JGBs are also slated for today.