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Futures Pressured By U.S. Tsy Moves

JGBS

JGB futures shed 18 ticks in the overnight trading session, taking cues from the U.S. Tsy space, which weakened on the back of a firmer than expected round of U.S. CPI data and the observance of a wide tail on the latest 30-Year Tsy auction. Local reaction to the overnight dynamic will set the tone in early Tokyo dealing.

  • On the inflation front, the latest RTRS survey revealed that 40% of Japanese firms plan to pass on the well-documented rising global commodity costs to their customers, while 14% have already done so. Meanwhile, 44% of the firms surveyed have said that they will be raising wages during the current financial year (most of which have tabled rises of 1-3%), while 42% aim to keep pay at unchanged levels, the remainder plan cuts.
  • PPI data and an enhanced liquidity auction covering off-the-run 5- to 15.5-Year JGBs headline the local docket on Thursday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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