Futures See Lower Lows

JGB futures shed 14 ticks during the final overnight session of last week, with the broader core FI weakness weighing.

• The move heightens the chances of 10-Year yields making a meaningful break above the 0.10% mark after Friday's close above, with continued focus on the broader reflation trade narrative and the potential for tweaks to the BoJ's broader monetary policy settings at the end of its ongoing policy review (with the findings set to be released in March) front and centre.
• After hours on Friday saw the Japanese government cut its headline economic assessment for the first time since April 2020 in the wake of the impact of the COVID-related state of emergency. The latest outlook report said the Japanese economy "shows weakness in some components" although with some signs of picking up, despite the risks from the virus.
• Monday's local docket will be headlined by services PPI data and BoJ 10-25+ Year Rinban ops.