Futures Slightly Stronger Overnight, US Tsys Richer After Retail Sales & 20Y Auction

In post-Tokyo trade, JGB futures are slightly stronger, closing +4 compared to settlement levels. Overnight, US tsys reacted positively to a weaker-than-expected US retail sales report and a strong 20Y bond auction. US tsys finished with yields 5-7bps lower across benchmarks.

• US Retail Sales: Advance MoM (0.1% vs. 0.3% est, prior down revised to -0.2% from 0.0%), Ex Auto and Gas (0.1% vs. 0.4% est, prior revised to -0.3% from -0.1%). Retail Sales Control Group (0.4% vs. 0.5% est, prior revised to -0.5% from -0.3%).
• Tuesday’s rally in US tsys came despite some Fed speakers pushing back on dovish expectations: Boston Fed Collins: "shouldn't overreact to a month or two of good inflation data"; StL Fed Musalem "could be 'quarters' before the first rate cut".
• (Reuters, ICYMI) “The price Japanese companies charge each other for services with high labour costs rose 2.8% in April from a year earlier, the fastest increase in nearly four years, central bank data showed on Tuesday.”
• Today, the local calendar will see Trade Balance and Tokyo Condominiums for Sale data alongside the BoJ Minutes of the April Meeting.