Futures Richer Overnight, US Tsy Curve Twist Flattens, BOJ Noguchi Speech Due

In post-Tokyo trade, JGB futures are richer, closing +13 compared to settlement levels, after US tsys twist-flattened, pivoting at the 5s, with yields 1bp higher to 14bps lower across benchmarks.

• Tsy futures climbed off second-half lows as the September FOMC Minutes showed a majority expect one more hike, while some deemed further increases not warranted. However, that was before a deepening selloff in longer-run Tsys pushed the 10-year yield to a 16-year high, a move some policymakers have since argued could be a substitute for additional rate hikes.
• Earlier in the session there was little reaction to the latest round of US data, with headline PPI was a touch firmer than forecast.
• Bloomberg reports that “The yen’s weakness is so entrenched that even ending the Bank of Japan’s negative-rates policy may fail to save it.” (See link)
• Today the local calendar sees PPI, Core Machine Orders, Bank Lending (Incl Trusts) and Tokyo's Office Vacancies data. BOJ Board Member Noguchi is also due to give a speech in Niigata.