Futures Slightly Weaker Overnight, NASDAQ Slump Supports US Tsys

In post-Tokyo trade, JGB futures are slightly weaker, closing -5 compared to settlement levels, after a subdued NY session for US tsys.

• An early drift higher in US yields was reversed as equities weakened. The US 10-year yield finished unchanged at 4.16%, with the US 2-year yield 2bps higher at 4.44%.
• The rotation out of big tech weighed heavily on the NASDAQ and the S&P 500. Many of the highflyers that have supported the tech sector this year slumped amid worries over trade restrictions as "Trump trades" gain favour. The markets are looking for a Republican sweep in November.
• Fed Beige Book for July was supportive amid expectations of slower economic growth tied to election uncertainty, domestic policy, inflation and geopolitical uncertainty.
• Fed speak from Richmond Fed Barkin and Fed Gov Waller leaned dovish. “While I don’t believe we have reached our final destination, I do believe we are getting closer to the time when a cut in the policy rate is warranted,” Waller said.
• Today, the local calendar will see Trade Balance data alongside 5-year Climate Transition supply. Export growth is tipped to turn down a touch but remain positive in y/y terms.