Futures Marginally Weaker Overnight, US Tsy Impetus Weighs

JGB futures cheapened with US Tsys in overnight trade (albeit with the usual lower beta), closing near the session low (147.28), -4 vs. settlement levels. At 147.31, JBM3 sits at the lowest level seen since March 16.

• US Tsys were pressured for the third successive session in the wake of the much stronger-than-expected Empire State Manufacturing Index reading.
• Domestically, JiJi sources have suggested that the BoJ is considering penciling in a FY25 CPI rise of 1.6-1.9% in its initial projection covering that period (to be released at it's April meeting). This would help cement the BoJ's on hold stance in the immediate term, given its focus on the sustainability of the current inflationary impulse when assessing policy parameters.
• A liquidity enhancement auction for off-the-run 5- to 15.5-Year JGBs will take place today, with appearances from BoJ Governor Ueda & Deputy Governor Uchida also tabled.