Futures Settle In Mid Range For The Week, Tokyo CPI Slightly Below Forecasts

JGB futures (JBU4) finished at 142.77, +.03 versus settlement levels. This left us close to the mid point of this week's range.

• On the data front we have just had July Tokyo CPI print. The headline result saw a 2.2%y/y print, against a 2.3% forecast and 2.3% prior. Ex fresh food was 2.2%y/y in line with forecasts and 2.1% prior. The ex fresh food and energy measure was just below estimates at 1.5%, prior 1.8%.
• In the cash JGB space we had the 10yr yield finish up just under 1.06% yesterday, shifting away from recent highs near 1.10%, Equity volatility has likely seen some support emerge for bonds in the space. Back end US yields were mostly lower in Thursday trade.
• The 20 and 30yr benchmarks also finished lower in yield terms (-2.6bps for the 20yr, -3.5bps for the 30yr).
• In the swap space, the 10yr rate is just under 1.00%.
• Note later today we have 2yr debt supply on tap.