Futures Richer, BoJ Gov. Ueda Sess Uncertain Elements in Prices

JGB futures pare overnight gains in early Tokyo trade to be at 148.74, +12 compared to settlement levels, as local participants digest US tsys reaction to the highest rise in US initial jobless claims since October 2021.

• Cash US tsys are trading little changed in Asia-Pac trade.
• On the data front, M2 & M3 rise respectively 2.7% y/y and 2.1% y/y.
• Official CPI and PPI data from China headlines today’s Asian session, the release crosses in just under 30 minutes (0230 BST).
• During a parliamentary session, BoJ Governor Ueda expressed the central bank's intention to pursue a balanced policy approach, taking into account both the positive impacts and potential side effects of their actions. Adding, he sees various uncertain elements over prices and will scrutinise various data in producing the next quarterly forecasts in July.
• Cash JGBs are trading mixed in morning Tokyo trade with yield movements ranging from +0.8bp (1-year) to -0.8bp (7-year). The benchmark 10-year yield is 0.3bp lower at 0.435%, below the BoJ's YCC limit of 0.50%, ahead of today’s BoJ Rinban operations covering 1-10 years and 25-year+ JGBs.
• Swap rates are 0.1-0.5bp lower across the curve. Swap spreads are mixed across the curve.