Free Trial

Futures Richer With US Tsys, Light Local Calendar

JGBS

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.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.