Futures Richer With US Tsys, Light Local Calendar

In post-Tokyo trade, JGB futures are richer, closing +22 compared to settlement levels, after US tsys extended their post-FOMC rally following friendly economic data and regional banking concerns. Initial Jobless Claims unexpectedly rose by 9k last week to 224k.

• In Q4, nonfarm productivity growth exceeded expectations, showing a robust annualised increase of 3.2%. Consequently, unit labour costs, at an annualised rate of 0.5%, turned out to be weaker than anticipated. This marks the second consecutive quarter of subdued performance in unit labour costs.
• The KBW Regional Banking Index closed down ~2%, but off the midday low (-5%), driven by concerns over NY regional banks after New York Community Bancorp (purchaser of collapsed Signature Bank shares) fell over 40% yesterday and as much as 14% on Thursday.
• In other developments, the BoE maintained its policy rate at 5.25% following a 6-3 decision, indicating a persistent division within the MPC. Notably, two MPC members advocated for a 25bp hike, while one member persisted in advocating for a 25bp cut.

• Today, the local calendar sees Monetary Base data, along with BoJ Rinban Operations covering 1-10-year JGBs.